PRIVATE COMPANY VALUATION GUIDE

Private Company Valuation:
The Complete Guide

How do you put a defensible number on a company that isn’t listed on any exchange?

This guide walks through the three approaches professional investors actually use, market, income and cost, and shows where each one fits as a company matures from a pre-revenue startup to a cash-generating private firm.

written by:

Picture of Denis Voldman

Denis Voldman

Head of Product @ Venionaire DealMatrix

The three valuation approaches

Every credible valuation method belongs to one of three families. The same framework underpins the IPEV 2025 guidelines and the way DealMatrix builds its data.

Market approach

Price the company against comparable companies and deals, multiples such as EV/Sales and EV/EBITDA, derived through CCA and PTA. The backbone of private-market valuation.

Income approach

Value the company on its own expected cash flows, DCF, the scenario-weighted First Chicago method, and the reverse-engineered VC method.

Cost approach

Fall back to what the assets, or the team, would cost to rebuild. Mostly relevant in distress, liquidation and acqui-hire situations.

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The maturity spectrum. "Startup valuation" is simply the low-data end of private company valuation. Pre-seed companies have no cash flows, so investors lean on qualitative methods; from that onward, multiples become the connective tissue that carries all the way to mature private firms. This guide is organised around that spectrum.

VENIONAIRE DEALMATRIX MULTIPLES

Stop guessing your multiple.

DealMatrix gives you market-realistic EV/Sales and EV/EBITDA multiples for private companies, filtered by sector, stage and region, built on 20 years of data and IPEV-2025-compliant.