“There are many unknown variables and subjective opinions to consider when valuing a company. Will founders be up to the challenge? Are market conditions to remain favorable? How long can a company sustain its competitive advantage?
Both a science and an art, valuing a business is notoriously hard. But knowing a company’s value is crucial.
Business valuations help venture capital (VC) firms track their portfolio performance, mergers and acquisitions (M&A) teams analyze acquisition targets, and entrepreneurs raise money,” according to CB Insight’s report on “How To Value A Company”. This is a great report about:
1. what data is needed to value a company,
2. how to spot undervalued or overvalued businesses, and
3. which valuation methods to use.