Business valuations are intricate processes that involve many moving parts. Many business valuations begin by looking at the company’s balance sheet, but it doesn’t end there. Business valuation experts will estimate the cost of a business’s assets, equipment, and inventory, review its debts and liabilities, and project its revenue and earnings. The process also uses earnings multipliers to calculate the price-to-earnings (P/E) ratio that estimates the company’s earnings over the next several years.