Comparable Company Analysis
Comparable Company Analysis (Comps) is a foundational valuation tool used in investment banking, equity research, and corporate finance. By benchmarking a company against similar listed peers across valuation multiples (EV/EBITDA, P/E, EV/Sales etc.), growth rates, margins, and financial metrics, you obtain a market‑anchored view of relative value.
At Synpact Consulting, we deliver rigorous Comparable Company Analysis services to support clients in valuation, deal structuring, investor benchmarking, and fairness assessment. Our approach emphasizes clean peer selection, consistent metrics, adjustments, and defensible conclusions.
We assist corporates, sponsors, and advisors in evaluating a company’s multiples, relative positioning, and valuation range—all grounded in market reality and financial discipline.
Why Choose Synpact for Comparable Company Analysis
- Peer Selection Rigor: Best practice in selecting truly comparable listed companies (size, business model, geography).
- Homogenization & Adjustments: Normalizing financials (non‑core items, exceptional events), currency, accounting differences.
- Multiple Metrics Coverage: Use of EV / EBITDA, P/E, Price / Book, EV / Sales, growth multiples, margin multiples.
- Transparency & Documentation: Full disclosure of peer choices, adjustments, assumptions, and limitations.
- Speed & Scalability: Rapid turnaround for comps and updates as markets evolve.
- Integration with Valuation Models: Comps feed into DCF, precedent transaction, and sensitivity analysis frameworks.
Our Comparable Company Analysis Services
Peer Universe Identification
Selection of relevant comparable listed companies (industry, size, growth, geography).
Screening criteria, peer filters, and justification of exclusion/inclusion.
Financial Normalization & Adjustment
Adjust historic financials for non‑recurring items, amortization, discontinued operations.
Adjust for capital structure differences, minority interests, and off‑balance adjustments.
Multiple Calculation & Benchmarking
Calculation of standard valuation multiples: EV/EBITDA, P/E, EV/Sales, EV/EBIT.
Growth, margin, and efficiency multiples (Revenue growth, ROIC, Operating margins).
Valuation Range & Sensitivity
Derivation of valuation ranges by applying peer multiples to target metrics.
Sensitivity tables (multiple variation, growth/discount rate shifts) to show valuation bands.
Comparability & Quality Checks
Identify outliers, apply trimming or winsorization.
Consistency checks and cross-reference with precedent transactions or DCF outcomes.
Process & Workflow
- Engagement & Scoping – Define target company, sector, geography, peer filters.
- Data Collection & Peer Selection – Gather peer data, financials, public filings, market data.
- Normalization & Adjustment – Clean up financials, apply adjustments, reconcile to consistent basis.
- Multiple Computation & Benchmarking – Compute peer multiples and metrics.
- Valuation Application & Sensitivity – Apply multiples to target, run sensitivity / scenario ranges.
- Review & Reporting – Deliver final comps table, valuation range summary, assumptions memo, peer notes.
Industries & Use Cases
Industries / Sectors Covered:
- Technology & SaaS
- FinTech & Financial Services
- Healthcare & Life Sciences
- Consumer & Retail
- Industrials & Manufacturing
- Energy / Infrastructure
Use Cases:
- Valuation for fundraising, IPOs, M&A
- Fairness opinions and fairness benchmarking
- Investor benchmarking & relative valuation
- Market multiples as sanity check to DCF / transaction comps
- Sector reports, pitch decks, valuation presentations
Frequently Asked Questions (FAQs)
Q: How do you choose which peers are “comparable”?
A: We consider business model, revenue mix, geography, margins, growth prospects, size, and capital structure. Any peer selected is justified and documented.
Q: Why normalize financials?
A: To remove distortions from non‑recurring items, accounting quirks, and ensure apples‑to‑apples comparison.
Q: Which multiples are most useful?
A: It depends — EV/EBITDA and P/E are commonly used, but EV/Sales, EV/EBIT, and growth / efficiency multiples also provide valuable perspective.
Q: How long does a comps analysis engagement take?
A: Usually 2–5 business days, depending on number of peers, data complexity, and adjustments needed.
Q: What deliverables do you provide?
A: Peer universe list, normalized financials, multiples table, valuation range summary, sensitivity tables, assumptions & notes.
Call to Action
Want a market‑anchored, defensible valuation? Let Synpact Consulting prepare a crisp, reliable comparable company analysis that powers your valuation, strengthens your negotiation, and aligns you with market benchmarks.
Contact: info@synpactconsulting.com to request a comps report or discuss your project.