Guideline public company method: Pros and cons

Description

Abstract: In determining the value of a private business, valuators often look at other companies, whether they are privately owned or public. This article discusses how the guideline public company method, a variation of the market approach, can be useful — as long as its drawbacks are understood. The article notes that, if used appropriately, the guideline public company method can provide valuable insight into the factors driving a particular industry’s market value.