article thumbnail

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. Comparable Companies Analysis (CCA/Comps) Comparable Companies (Comps) Analysis involves identifying publicly traded companies in the same industry with similar growth prospects, and economic characteristics.

article thumbnail

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. P/E (Price-to-Earnings) Ratio: Helpful for assessing market valuation.