Market multiples valuation is all about looking at the market to determine what a business is worth. It’s not necessarily an exact science, but rather more of a guideline to help you understand how similar businesses are valued. To do a market multiples valuation, you look at comparable companies and their market values in order to estimate the value of your own company. You calculate the multiple of whatever financial ratio you’re analyzing and use that as your estimate. The most commonly used ratios in market multiples valuation include price/earnings, enterprise value/EBITDA, and revenue/enterprise value. By looking at these numbers for other companies in the same sector or industry, you can get a better idea of what your own business might be worth.