The subject of this paper is the theoretical base of company valuation using the multiples method. The goal of this paper is to describe the company valuation process through the multiples method and main challenges in the process itself. The paper also defines other approaches to company valuation: the DCF method, the residual income method, the multiplier method, and the method of comparative transactions. The entire process of valuation using the market method and the specifics of the process, the type and form of the multipliers and the selection process of relative valuation are explained in detail. Valuation using a multiplier is one of the most commonly used methods due to its practicality and simplicity, and it belongs to the category of relative valuation models because it takes into account comparable assets. Method is based on a comparison of the relative financial indicators of the target company with the relative financial indicators of similar companies. In the example of AD Plastik, a relative valuation was conducted with the key challenges and limitations in the process explained throughout the process. The research shows that AD Plastik, according to the relative valuation, is trading at a slight discount to its estimated value on 1.7.2024. The situation can be explained by the fact that market participants expect a more intensive recovery of AD Plastik's business in the coming years and, accordingly, a valuable company at higher levels.