Finance glossary
Comparable Company Analysis
Definition
Valuing a firm using multiples of similar public companies.
Comparable company analysis, or comps, estimates a company value by applying valuation multiples from similar publicly traded peers. It is fast and market-based but depends on finding truly comparable firms and can inherit the market mispricing of the peer group.
In a sentence
Using comparable company analysis, the banker valued the firm against the peer group's EBITDA multiples.
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