A simple method of valuing a private company is to apply the price-earnings ratios of publicly traded firms in the same industry to the private company's earnings.

Name: A simple method of valuing a private company is to apply the price-earnings ratios of publicly traded firms in the same industry to the private company's earnings.
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This method is called the comparable company analysis and it is a common approach for valuing private companies.

A Simple Method of Valuing a Private Company Is to Apply