A limited number of methods are employed by businesses and investors to ascertain the value of a company. One such method is comparable company analysis, which can assist in determining the worth of a specific company by examining other comparable companies in the same industry.
This specific analytical model operates under the premise that firms of comparable magnitude and reputation will be assessed at comparable valuations. Nevertheless, it is critical to comprehend that this type of analysis will merely furnish investors with an approximation of the company’s true worth, which may differ significantly.
