VALUATION OF FIRM
The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
For example, an analyst valuing a company may look at the company's management, the composition of its capital structure, prospect of future earnings, and market value of assets.
Judging the contributions of a company's management would be more of a subjective valuation technique, while calculating intrinsic value based on future earnings would be an objective technique.

MULITPLES
Multiples are used while relative valuations are done to estimates the value of the assets by looking at the pricing of the ‘comparable' assets or the firms to common variable such as earnings, cash flows, book value or sales. Multiples like P/E, P/BV, P/Sales, P/Cash flow, P/Dividends, Market Value/Replacement Value (Tobin's Q) are normally used in the market. For example industry P/E is used to value any......

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Title: Venture Capital
Approximate Word Count: 11761
Approximate Pages: 48 (250 words per double-spaced page)

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