Valuation
Comparable-Company Analysis
Definition
What is Comparable-Company Analysis?
Valuing a business using trading multiples of similar listed companies.
Example in practice
How This Looks in Practice
The analyst applies peer EV/EBITDA multiples to the target's earnings.
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Related Terms
Valuation
Market Value
The price at which an asset could trade in the market at a given time.
ValuationIntrinsic Value
An estimate of an asset's underlying economic worth based on expected cash flows, assets, or earning power.
ValuationFair Value
An estimate of an asset's appropriate value under specified assumptions or accounting standards.
Capital BudgetingNet Present Value
Present value of expected cash inflows minus present value of expected cash outflows.