Valuation & Finance
Comparable Company Analysis (Trading Comps)
A valuation method benchmarking a target against the trading multiples of similar publicly listed companies, adjusted for scale and liquidity differences.
Buyer Example
Buyer valuing a Coimbatore auto-ancillary target uses listed peers trading at 9-11x EV/EBITDA, but applies a 35% combined discount for scale (target is 1/20th the size) and illiquidity, anchoring its offer at 6x — using the trading comps range as a ceiling to resist the seller's higher expectations.