Business Valuation in India: 5 Proven Methods to Price Your Company
Selling or merging a company is one of the biggest financial milestones an entrepreneur can reach. Accurate business valuation in India is the difference between a deal that builds wealth and one that leaves money on the table. Many owners still rely on gut feel or outdated metrics—and that’s where mistakes begin. Here are five proven valuation methods every seller, buyer, or investor should know: 1 Discounted Cash Flow (DCF) Projects future cash flows and discounts them back to present value. Ideal for startups or growing SMEs. 2 Comparable Company Analysis (Comps) Match your EBITDA, revenue, or user base to similar firms that recently sold or are publicly listed. 3 Precedent Transactions Anchors price expectations to real-world deals closed in your sector over the last three to five years. 4 Asset‑Based Valuation Total the market value of tangible and intangible assets minus liabilities—useful for asset‑heavy businesses. 5 Earnings Capitalization Capitalizes average post‑tax earnings by a risk‑adjusted rate; best for mature, profit‑stable firms. Pro Tip: Nextep offers independent reports so your business valuation in India aligns with current market standards and regulatory norms. Common Pitfalls To avoid these traps, review our guide on Top Mistakes Sellers Make. How Nextep Solution Adds Value Ready to unlock your true worth? Contact our valuation team for a free discovery call.