This question is about trader.

How to value a private company?

By Zippia Team - Dec. 9, 2022

The most common way to value a private company is to use comparable company analysis (CCA). CCA is a process in which you search for publicly traded companies that most closely resemble private companies.

From there, you average their information to estimate where the private company fits within the industry.

You can follow a similar method where you track the discounted cash flow of similar companies in the same industry to make a solid assumption on this private company's discounted cash flow.

There is no way to fully understand and value a private company, as they keep all of their financial information private, so it is important to use a useful, meaningful methodology to make the best approximation possible.

Choose from 10+ customizable resume templates

Zippia allows you to choose from different easy-to-use templates, and provides you with expert advice. Using the templates, you can rest assured that the structure and format of your resume is top notch. Choose a template with the colors, fonts & text sizes that are appropriate for your industry.