how do you value a business 
business valuation is a major element of corporate financed used to measure the value of a company before mergers acquisitions and public offerings in order to value the business analysts will examine a company s financials to determine its assets liabilities capital structure the amount of stocks and bonds issued cash flows and other investments to produce an objective valuatio for the company the bottom linea relative valuation model compares the value of similar companies in the same market segment based on comparable metrics like cash flow and earnings it is possible to determine if a company uses its resources more or less effectively than its competitors 