Market multiples, also known as comparable company analysis (CCA) or trading multiples, are a valuation method that assesses the value of a startup by comparing it to the financial metrics of similar publicly traded companies. The importance of market multiples lies in its ability to leverage the market’s collective wisdom in valuing companies within a specific industry. This methodology considers various multiples such as Price-to-Earnings (P/E), Price-to-Sales (P/S), or Enterprise Value-to-EBITDA (EV/EBITDA) to determine a startup’s valuation relative to its peers. Market multiples provide a benchmark for assessing a startup’s relative value and are particularly valuable in industries with comparable publicly traded companies, such as technology, healthcare, and consumer goods. This method is essential in the early stages of startup valuation, offering a practical approach when financial data may be limited. By comparing a startup to similar, established companies, market multiples help investors and entrepreneurs gauge the potential market sentiment and relative positioning of the startup, contributing valuable insights for strategic decision-making and investment negotiations.