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How to Value a Small Business

Equilest

By analyzing comparable transactions or market multiples, such as price-to-earnings (P/E) ratios, analysts can estimate the business's value relative to its peers. Small businesses should ideally be valued regularly, especially before significant events such as a sale, merger, acquisition, or partnership formation.

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Private Company Valuations—A Complete Guide

Valutico

b) Gathering Financial Data: Collecting financial information, such as revenue, earnings, and valuation multiples, for the comparable companies. In contrast, using the average P/E ratio of 30x for Apple and its earnings of $50 billion would result in an estimated valuation of $1.5 trillion.

article thumbnail

Private Company Valuations—A Complete Guide

Valutico

b) Gathering Financial Data: Collecting financial information, such as revenue, earnings, and valuation multiples, for the comparable companies. In contrast, using the average P/E ratio of 30x for Apple and its earnings of $50 billion would result in an estimated valuation of $1.5 trillion.