Remove Fair Market Value Remove Price to Book Remove Price to Earnings
article thumbnail

Understanding Valuation Techniques in Mergers and Acquisitions

Sun Acquisitions

This approach relies on analyzing the market value of comparable publicly traded companies, known as guideline companies or multiples. By comparing key financial metrics such as price-to-earnings (P/E) ratios, price-to-sales (P/S) ratios, and price-to-book (P/B) ratios, analysts can estimate the target company’s value.

article thumbnail

M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

Valuation in M&A refers to the process of determining the fair market value of a company being merged or acquired for guiding financial decisions and negotiation strategies in the transaction. The most common market-based valuation methods are the Comparable Companies Analysis (Comps) and the Precedent Transactions Analysis.