Investment BankingIntermediate
Comparable Company Analysis
Trading comps
Valuing a company by comparing it with similar listed companies' multiples.
Detailed explanation
Pick a peer group, calculate multiples like EV/EBITDA and P/E, and apply the range to the target's figures.
Why it matters
Quick, market-based check on value used in almost every pitch book.
Key points
- Peer selection is the hardest part.
- Use median, not just average.
- Reflects current market mood.
Related terms
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Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.