How is the market value of a private company actually calculated?



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SIR
How is the market value of a private company actually calculated?

1 Answer(s)


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Depends -
1. If it has positive cash flows DCF is used
2. If it is a startup with no cash flows then comparables method is used
3. Venture Capital investors will use one of the above techniques to arrive at some kind of market value.

Just like in the public markets, the private value is also based on demand and supply for the companys shares.