# Comparable Company Analysis Example Build a comparable company analysis with peer selection, trading multiples, and implied valuation outputs in a cleaner Excel-ready structure. - Canonical: https://finamodel.com/examples/comparable-company-analysis - Excel download: https://finamodel.com/templates/comps.xlsx - Category: Capital Markets - Model type: Valuation - Difficulty: Intermediate - Audiences: Bankers & advisors, Investors & analysts, Investment bankers, Private equity, Corporate development, Analysts - Tags: Valuation, M&A, Multiples, Benchmarking ## Overview This comparable company analysis example follows a sample peer group from company data to an implied valuation range. Use the workbook preview to trace how market capitalisation, debt, cash, revenue, and EBITDA feed into a trading-multiples comparison. The figures are illustrative and are provided to demonstrate the analysis. Start with Company_Data to review the peer inputs, then move to Trading_Comps to compare the companies on a consistent basis. In Implied_Valuation, follow how the selected multiples translate the target company’s financial metrics into valuation estimates. The Dashboard brings the results together for review. Read the range alongside the underlying peer data. Differences in growth, margins, and leverage help explain why companies trade at different multiples. This example gives you a starting point for reviewing those differences before choosing peers and assumptions for your own valuation. ## What's included - Peer company input set and screening framework - Trading multiples including EV and equity metrics - Outlier handling and summary statistics - Implied valuation range outputs - Equity bridge to implied share price - Peer company list with market cap and trading multiples - EV/EBITDA, P/E, EV/Revenue, and custom multiples - Trading vs. transaction multiple comparison - Median and quartile calculations with outlier flagging - Valuation bridge from peers to target company ## Built for market-based valuation work Use this model to benchmark a company against public peers and frame a valuation range using observed trading multiples. ## Useful alongside DCF and deal analysis Comparable company analysis is often strongest when used with other valuation methods rather than in isolation. ## Cleaner for repeatable peer work This gives you a structured peer-comparison layout instead of rebuilding the trading comps table from scratch each time. ## Built for market-based valuation work Use this model to benchmark a company against public peers and frame a valuation range using observed trading multiples. ## Useful alongside DCF and deal analysis Comparable company analysis is often strongest when used with other valuation methods rather than in isolation. ## Cleaner for repeatable peer work This gives you a structured peer-comparison layout instead of rebuilding the trading comps table from scratch each time. ## Workbook structure ### Peer Set This sheet defines the peer universe and gives you the screening base for the whole analysis. - Selected comparable companies - Core operating and market context - Peer set rationale - Starting point for the trading comp work ### Trading Multiples The multiples sheet captures the valuation metrics used to compare the company against peers. - EV and equity value inputs - Revenue, EBITDA, EBIT, or earnings multiples - Current trading metric visibility - Comparable benchmark set ### Adjustments This sheet handles outliers, normalisation choices, and any adjustments needed for a more credible peer view. - Outlier treatment - Normalisation assumptions - Peer clean-up logic - More credible comparison set ### Valuation Output The output sheet converts the peer analysis into an implied valuation range for the company being assessed. - Implied valuation range - Low, median, and high case outputs - Bridge from multiple to value - Clear market-based valuation summary ### Peer Set This sheet defines the peer universe and gives you the screening base for the whole analysis. - Selected comparable companies - Core operating and market context - Peer set rationale - Starting point for the trading comp work ### Trading Multiples The multiples sheet captures the valuation metrics used to compare the company against peers. - EV and equity value inputs - Revenue, EBITDA, EBIT, or earnings multiples - Current trading metric visibility - Comparable benchmark set ### Adjustments This sheet handles outliers, normalisation choices, and any adjustments needed for a more credible peer view. - Outlier treatment - Normalisation assumptions - Peer clean-up logic - More credible comparison set ### Valuation Output The output sheet converts the peer analysis into an implied valuation range for the company being assessed. - Implied valuation range - Low, median, and high case outputs - Bridge from multiple to value - Clear market-based valuation summary ## Features - **Outlier detection:** Flag and optionally exclude outliers that skew median multiples, with audit trail of adjustments. - **Growth and margin adjustments:** Apply scaling factors for growth differential or margin profiles between peers and target. - **Valuation waterfall:** Show exactly how median EBITDA multiple, target EBITDA, and other drivers stack to implied value. ## Use cases - **M&A pitch book development:** Pull current multiples and show your target's valuation relative to peers and deal history. - **Capital allocation decisions:** Use comps to benchmark target valuation against internal hurdle rates and opportunity cost. - **Quarterly board reporting:** Track peer multiples over time so boards see how relative valuation has shifted. ## Frequently asked questions ### What is a comparable company analysis? It is a valuation method that uses trading multiples from similar public companies to estimate a valuation range for a business. ### What multiples are usually included? Typical multiples include EV to revenue, EV to EBITDA, EV to EBIT, and price to earnings, depending on the business. ### What should a comps model include? It should include peer company inputs, trading multiples, summary statistics, and an implied valuation range. ### Why is peer selection important? Because the quality of the output depends heavily on whether the peer set is actually relevant to the company being analysed. ### Is this used on its own? Often it is used alongside DCF and transaction analysis rather than as the only valuation method. ## Related templates - [DCF Model](https://finamodel.com/templates/dcf-model) - [Leveraged Buyout Model](https://finamodel.com/templates/lbo-model) - [Sum of Parts Valuation](https://finamodel.com/templates/sum-of-parts-model)