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Valuation Using Multiples—What Is It and How Does It Work? Core Ideas Explained

Valutico

Valuation using multiples is one of the three main ways to value a business, sometimes referred to as the ‘market-based approach’ It’s used widely by valuation practitioners, who will take a ratio either from comparable companies, or comparable transactions, to help value their target company.

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Your Guide to Valuing a Company Using the Multiples Approach

Valutico

Valuation using multiples is one of the three main ways to value a business, sometimes referred to as the ‘market-based approach’ It’s used widely by valuation practitioners, who will take a ratio either from comparable companies, or comparable transactions, to help value their target company.

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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

A combination of valuation methods is used in M&A to provide a comprehensive view of a target company’s worth. Market-based methods like Comparable Companies Analysis and Precedent Transactions Analysis offer relative measures of value based on market data.

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How to Use Comparables Effectively in Startup Valuation

Equidam

In the context of startup valuation, “comparables” (often shortened to “comps”) refer to companies that are used as benchmarks to help estimate the value of the startup in question. Industry classification systems like GICS or NAICS can serve as a starting point for identification.

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