Valuation - ValuationComparable Company Analysis A...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Valuation- Comparable Company Analysis A comparable company analysis (CCA) is used to evaluate the value of a company using the valuation multiples and comparing with other businesses of similar size in the same industry. This comparison analysis is used to estimate the value of stock price or the firm’s value. Comparable company analysis starts with establishing a peer group consisting of similar companies of similar size in the same industry and region. Investors are then able to compare a particular company to its competitors on a relative basis. This information can be used to determine a company’s enterprise value and to calculate other ratio used to compare a company’s to those in the peer’s group. Measure of company value /Measure of company’s analysis 1. Enterprise valuation— Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. The market capitalization of a company is simply its share price multiplied by the number of shares a company has outstanding. Enterprise value is calculated as the market capitalization
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '16
  • Arpita Ghosh
  • Valuation, Mahindra Holiday, EIH

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern