How to value small companies

The easiest way to evaluate a small company is to choose a similar comparable company and choose a similar or identical industry business or product model. By comparing the characteristics, scale, development, average P/E ratio, prospect, capital and industry status of the company and comparable companies, it is concluded that the valuation of comparable companies can be used to calculate the valuation of small companies.

Introduction to company valuation

Company valuation refers to evaluating the intrinsic value and profitability of the company's own assets. The higher the company's valuation, the stronger the company's comprehensive strength and the better its development prospects. The lower the company's valuation, the weaker its comprehensive strength and the worse its development prospects. Company valuation can enable managers to accurately understand the company's capabilities and accurately judge its intrinsic value, so as to adjust the company, accurately price various transactions, and have a clear understanding of themselves. At the same time, the company's valuation is also a necessary condition before the company's financing transaction. The valuation of any trading company is valuable.