There are two different ways of valuing a company, namely the Intrinsic Value (discounted cash flow valuation) and the Relative Valuation method.
Intrinsic Value (DCF): Without making comparisons to any other firms, intrinsic valuations look at a company's value based on its estimated cash flows.
This method of valuation, despite being essentially subjective, helps investors in estimating how much money they might make from an investment after adjusting for the value of money.
Relative Valuation method: The second strategy entails identifying a comparable peer group, which consists of companies in the same industry with comparable operational, growth, risks, and return on capital characteristics.
True, identical companies do not exist, of course, but you should try to discover as many comparable organizations as possible. Determine the relevant industry multiples. To arrive at a valuation, take the median of these multiples and multiply it by the target company's relevant operating statistic.