The market approach is determining the value of a business by inferring from the selling or trading metrics of comparable businesses and applying these metrics to the business’ own metrics. Application of this method is typically done by “Trading Comparables” – comparing a business to a list of similar companies that are publicly traded – and by “Precedent Acquisitions” – comparing the business to a list of recently acquired companies. In both methods the goal is to learn at what multiples of relevant financial metrics (revenue, EBITDA, earnings etc.) are similar companies currently trading at or recently bought at, and apply these multiples to the valued business’ metrics. For example: if similar companies are traded, on average, at a market value that equals 8x times their EBITDA, then taking the business which we want to value and multiple its EBITDA by 8x would give the fair market value of the business.