Below is some great content about different business valuation methods. If you are looking for some advanced modeling literature, I can highly recommend this modeling package which I have found extremely useful in helping me mastering both Excel and financial modeling - which works as a stable knowledge base in my investment banking carrier.

P/S ratio

P/S ratio is a price-to-sales (revenue) ratio. This multiple is employed generally to new companies that invest heavily in the beginning and earn negative cash flows for the early years. Since sales is hard to manipulate and is not influenced by accounting decisions, this multiple provides a relatively fair value of a company.

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