💡 How do you value a company?

Not every company can be valued the same way.

It depends on:

• What kind of company it is
• What stage it’s in
• What data is available

Here are 3 common approaches used in real-world valuation work :

1️⃣ Book Value / Adjusted Book Value
Best for companies that own assets but aren’t really operating. Think of land banks, or businesses winding down. If there’s no cash flow, we look at the balance sheet.

2️⃣ Market Multiples (like P/E or P/B)
Used when there are listed peers to compare with.
This works best in industries with stable expectations and when investors are active in that sector.
But—be careful. Multiples don’t work well in niche or high-risk businesses.

3️⃣ Discounted Cash Flow (DCF)
This is the most used method for ongoing businesses.
It involves looking at past performance and making thoughtful assumptions about the future.
A good DCF requires an understanding of the business logic behind the numbers.

🔍 At ORNA, we assist our clients choose the method that fits their situation best.