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The Key to a relative valuation model is that similar items will set similar prices. With Valuation by Multiples we try to take the multiple of similar companies and calculate for the appropriate valuation multiples for the current company.

Basically, valuation with multiples, we try to do a comparative analysis and apply the similarities to determine the value of another company. In this article, we will deep dive into valuation with multiples, computing valuation multiples, and most importantly, teach you how to do valuation by multiples.

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