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Valuation Using Multiples—What Is It and How Does It Work? Core Ideas Explained

Valutico

It is often divided into two main approaches – Comparable Company Analysis (CCA) and Comparable Transaction Analysis (CTA). CCA compares using companies, whereas CTA uses transactions. The ratio is then used in a simple multiplication calculation, to determine the value of the company in question.

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Your Guide to Valuing a Company Using the Multiples Approach

Valutico

It is often divided into two main approaches – Comparable Company Analysis (CCA) and Comparable Transaction Analysis (CTA). CCA compares using companies, whereas CTA uses transactions. The ratio is then used in a simple multiplication calculation, to determine the value of the company in question.