Comps EBITDA Market Risk 
Equidam
APRIL 26, 2025
Comparable Transactions (as a Primary Method): This method, often referred to as “comps,” involves applying valuation multiples (e.g., revenue multiple, ARR multiple, EBITDA multiple) derived from recent acquisitions or funding rounds of supposedly similar companies.
Equilest
SEPTEMBER 14, 2024
By associating a business with the right industry, evaluators can apply industry-specific benchmarks, market trends, and valuation multiples, ensuring a more accurate assessment of the company’s worth. Comps provide real-world data to anchor valuation models, ensuring that businesses are evaluated against appropriate industry standards.
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Valutico
OCTOBER 20, 2022
the multiple based or ‘ comps ’ (comparable company analysis) approach. Practitioners assume the business is sold as a multiple of some financial metric like EBITDA, based on what they can see today for other businesses that were sold, and what these comparable trading multiples are. . Rf = Risk-free Rate. EV/EBITDA Multiple.
Equidam
APRIL 22, 2025
4] , [3] , [5] Unlike mature, publicly listed companies which are easier to compare using multiples of current earnings (like EBITDA) [3] , startups must be valued based on their projected future; moats, margins and the perceived strength of their future growth trajectory. [3] in 3-7 years).
Equidam
APRIL 22, 2025
2] Startups typically lack significant historical financial data, often operate with negative profits initially, rely heavily on private equity or venture capital rather than traditional bank loans, and face a much higher risk of failure. [1] This premium rises when perceived market risk increases. [27] 2] [15] [17].
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