The market approach to business valuation is the process of determining the value indication of a business, business ownership interest, or security by using one or more methods that compare the subject business to similar businesses, business ownership interests, or securities that have been sold and bought. The Market Approach is one of the three main approaches applied by business valuators to estimate the fair market value of a business. The other two approaches are the asset approach and the income approach. When applying the several methods under the market approach, business valuators compare the subject company to similar businesses, business ownership interests, securities, or intangible assets that have been sold and bought. Such market transactions serve as a benchmark for the business being valued even though adjustments are applied by the valuer to address differences between the sold businesses and the one being valued. Some of the methods under the market approach include the guideline method, price to earnings multiples, and EBITDA multiples method.