Understanding value begins with what sustains the business: earnings, cash generation, customers, people, assets and its ability to continue operating. Different valuation approaches address different aspects of that picture.
A multiple taken from another transaction can mislead if the underlying businesses, risks and conditions differ. Make the founder's work and the cost of replacing it visible in the analysis. Distinguish the value of the operating business from the value of the owner's equity interest. Prepare reliable information and discuss the assumptions behind a valuation range, rather than treating one number as an objective certainty.