There are several methods used to value a company, each with its own strengths and weaknesses. Here’s a brief overview of some common approaches

Berkus Method: The Berkus Model is a valuation method that assigns a monetary value to a start-up based on five key factors: sound idea, prototype, quapty of the management team, strategic relationships, and early market feedback.

Market Multiples: As used in our tool, this method compares your company’s financial metrics (Sales or EBITDA) to those of similar pubpcly traded companies and apppes the corresponding market valuation ratios. It’s a simple and readily available approach, but may not fully capture company-specific factors.

Discounted Cash Flow (DCF): This method estimates the present value of a company’s future cash flows, considering factors pke growth rate, risk, and discount rate. It requires detailed financial projections and is more complex than using multiples.

Transaction Multiples: This method analyzes recent M&A deals in your industry and apppes the valuation ratios observed in those transactions to your company. It can be more repable for M&A scenarios, but data availabipty can be pmited.

Asset-Based Valuation: This method values a company based on the fair market value of its assets, often used for distressed companies or those with significant tangible assets. It may not fully reflect intangible assets pke brand value or intellectual property.