The Market Multiples Approach is a business valuation method that looks at the value of a company as proportionate to similar companies in a given market. It uses financial metrics like price-to-earnings (P/E) ratios and enterprise value-to-revenue (EV/Revenue) ratios to compare the relative worth of various businesses. This approach can be used to evaluate potential investments, compare comparable companies in an equity market, or measure a company’s performance against its peers. With this approach, business owners and investors can make informed decisions about their portfolios and investments based on current market trends.
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