Remove Comps Remove Enterprise Value Remove Price to Earnings
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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

The most common market-based valuation methods are the Comparable Companies Analysis (Comps) and the Precedent Transactions Analysis. These multiples are applied to target company’s latest financials such as revenue, earnings and book value of equity to arrive at an estimate of enterprise value or equity value.

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How Do I Find Precedent Transactions?

Equilest

Understanding Precedent Transactions Definition Precedent transactions, also known as comparable transactions or "comps," are past sales of companies or significant stakes in companies that can be used to value similar businesses. EBITDA: Earnings before interest, taxes, depreciation, and amortization.