The market-based valuation approach to determine the value of a business is based on the sale prices of comparable firms.

Name: The market-based valuation approach to determine the value of a business is based on the sale prices of comparable firms.
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The market-based valuation approach compares the business being valued to similar businesses that have been sold in order to determine the value. This method is also known as the comparable sales method or the transaction method.

The Market-Based Valuation Approach to Determine the Value of a Business