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If public companies are trading at price to earnings multiples of 10, 15, or higher, shouldn my business be valued based on the same multiples?

April 26, 2017companies Earnings multiples price public trading

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If public companies are trading at price to earnings multiples of 10, 15, or higher, shouldn my business be valued based on the same multiples?

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In a word, no. Public companies with access to public markets are typically worth more than most closely held businesses. Choosing the correct multiples requires an in-depth analysis by a qualified business appraiser.