There are several methods used to value a company, each with its own strengths and weaknesses. Here's a brief overview of some common approaches

• Market Multiples: As used in our tool, this method compares your company's financial metrics (Sales or EBITDA) to those of similar publicly traded companies and applies the corresponding market valuation ratios. It's a simple and readily available approach, but may not fully capture company-specific factors.


• Discounted Cash Flow (DCF): This method estimates the present value of a company's future cash flows, considering factors like growth rate, risk, and discount rate. It requires detailed financial projections and is more complex than using multiples.


• Transaction Multiples: This method analyzes recent M&A deals in your industry and applies the valuation ratios observed in those transactions to your company. It can be more reliable for M&A scenarios, but data availability can be limited.


• Asset-Based Valuation: This method values a company based on the fair market value of its assets, often used for distressed companies or those with significant tangible assets. It may not fully reflect intangible assets like brand value or intellectual property.