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

Valutico

The first is comparable company analysis (CCA), also known as “comps”. The second is precedent transaction analysis, known as “precedents” and also called a comparable transaction analysis (CTA). Not all of the necessary data is publicly available when conducting a precedent transaction analysis.

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Your Guide to Valuing a Company Using the Multiples Approach

Valutico

The first is comparable company analysis (CCA), also known as “comps”. The second is precedent transaction analysis, known as “precedents” and also called a comparable transaction analysis (CTA). Not all of the necessary data is publicly available when conducting a precedent transaction analysis.

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How to Value a Website or Internet Business in 2022

FE International

up to >6x (more on that later) and seen more than a few interesting valuations devised by buyers! With the comparable transactions method, you are looking for comparable metrics, usually multiples of earnings or revenue. The main prerequisite for a useful and accurate precedent transactions analysis is access to transaction data.