Market multiples are a financial metric used to determine the relative value of a business. Based on recent transaction data, they provide an insight into what investors are willing to pay for a certain type of company. Market multiples use traditional ratios such as revenue, cashflow, earnings, and asset values to compare one company against another. They help analysts and investors understand how much businesses within a given industry or sector are worth compared to each other. Market multiples can be an effective tool for evaluating alternative investments in companies, helping buyers and sellers negotiate price more fairly.