• Swetha.R
• Ravi. URS

This research paper delivers a comprehensive review of the effectiveness of comparative valuation methods when assessing the software business value. This valuation approach is also known as the Relative Valuation Approach, this valuation approach is used to derive a valuation of the target company and its industry peers based on various indicators. The research paper initially focuses on the various dynamics within the IT -Sector before analyzing and examining several market multiples like Price-to-earnings (P/E) price-to-sales (P/S), and Enterprise value to EBITDA ratios. This research paper also provides an overview of the strengths and limitations of a comparable valuation approach IT-Software industry. Furthermore, the research paper assesses the influence of aspects of the market such as industry trends, market fluctuations, and investors’ expectations on the correctness and dependability of comparable valuation results. This research provides insights and guidance for investors and analysts involved in the valuation and investment decisions related to the IT-software sector. the research also helps to enhance the understanding of correctly evaluating the intricate worth of IT software companies in a rapidly changing, tech-centric market landscape by providing an extensive assessment of apt comparable valuation methods suited to the complexities of the related industry or sector. By thoroughly valuing TCS, a well-established organization in this sector, this study project further deepens its understanding of the practical application of the comparable valuation approach. The study considered a set of comparable companies that, in terms of scale, market presence, and scale of business operations, are quite similar to the target company TCS. It then goes on to gather extensive financial data of the target company and its peer companies, which includes crucial figures, revenue, earnings, EBITDA, and Market value. In order to make well-informed decisions in the service market, the findings offer significant insights for investors, analysts, and industry stakeholders.

Corporate Valuation, Comparative Valuation, Relative Valuation Approach, IT-Software Sector, Intrinsic Value, Market Multiples.

"Assessing the Effectiveness of Relative Valuation Approach in Valuing Companies in the IT-software Sector", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.10, Issue 9, page no.f816-f823, September-2023, Available :http://www.jetir.org/papers/JETIR2309599.pdf

"Assessing the Effectiveness of Relative Valuation Approach in Valuing Companies in the IT-software Sector", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.10, Issue 9, page no. ppf816-f823, September-2023, Available at : http://www.jetir.org/papers/JETIR2309599.pdf