The Guideline Company Transactions Method (GCTM) is one of the business valuation methods under the market approach. This method of business valuation derives from the notion that the value of closely held businesses can be estimated by drawing from recent mergers and acquisition transactions and purchase or sale of comparable businesses either through private transactions or businesses listed on the stock exchange. To apply the GCTM, business valuation analysts derive market multiples such as Price to Earnings ratio, Enterprise Value/ EBITDA, and Price to Book ratio from comparable transactions where “comparable” business does not necessarily imply an identical business but rather a business that is substantially similar to the business being valued across a range of matrices. It is best when the comparable transactions involve businesses in the same industry as the business being valued. The GCTM is also referred to as the Guideline Transactions Method.