Comparable Transactions, also known as transaction multiples or precedent transactions, is a valuation methodology that involves assessing the value of a startup by comparing it to the financial metrics of similar companies that have undergone mergers, acquisitions, or other transactions. The importance of Comparable Transactions lies in its ability to leverage real-world market data, providing a tangible benchmark for valuing early-stage startups. This methodology aims to draw insights from transactions in comparable industries, considering factors such as revenue, earnings, or enterprise value. It offers a practical and market-driven approach to estimating the value of startups, particularly in their early stages when traditional financial metrics may be limited. Comparable Transactions is widely used in various industries, including technology, healthcare, and consumer goods, where similar transactions provide valuable insights into the market dynamics and valuations. By examining the financial outcomes of comparable companies, investors and entrepreneurs can better understand a startup’s potential value, aiding in strategic decision-making, negotiations, and overall business planning. The Comparable Transactions methodology is a valuable tool in the early stages of startup valuation, offering a real-world perspective that complements other quantitative methods, contributing to a more comprehensive assessment of a startup’s worth in dynamic and evolving markets.