Comparable Companies Analysis Valuation A comparable companies analysis is always used in company valuations and is a relative valuation method. The method indicates the value of similar companies in relation to different key ratios that is later compared to your business. Common key ratios in a comparable company valuation are: EV/EBITDA and EV/SALES. 1. Select ..
Precedent transactions valuation analysis Precedent transactions analysis is a relative valuation method based on precedent transactions and key ratios/multiples within a sector. Common used ratios are EV/EBITDA and EV/SALES. 1. Select the universe of comparable acquisitions To start with, you should identify transactions made in your sector. If you have difficulties finding such transactions, try to find ..