1. Identifying Comparable Companies: The first step is to identify companies that are similar in size, industry, and market position. 2. Gathering Data: Collect financial data such as revenue, EBITDA, and net income from these comparable companies. 3. Applying Multiples: Use valuation multiples (e.g., Price-to-Earnings, EV/EBITDA) derived from the comparable companies to estimate the value of the business in question.