How do you value a company?


1 Answer(s)


There is no right way to value a company.there is a lot of things by which we can value a company.we can do so by valuing the assets, the inventory of a company, the equipment.The balance sheet can give you an idea about company's assets. Often company are valued in terms of multiples of revenue. But in actual terms more accurate method is the earnings, the profit generated. Also one should not assume the profit to be stable as competition, supplier price changes and a declining industry can affect earnings.we should reflect that in our projections. Also some methods like discounted cash flow analysis(dcf),comparable trading analysis,comparable acquisition analysis can give an accurate method. I hope this will help you out and understand its function.