Hey guys, When performing comparable company analysis on a company with a FY other than Dec 31, what information do you actually calendarize for the company's financials (Reported Income Statement Section/Balance Sheet Data Section)? Also if you do need to change the company's financial, couldn't you just find the exact CY sales with some basic algebra rather than using the calendarization calculation (CY sales = (Month #)(Actual Fiscal Year Sales)/12 + (12 - Month #)(Estimated Fiscal Year Sales)/12) ?
16 Mar 2012
Hello all, I am working on a comp analysis for Tiffany and Co using Richemont, Signet Jewelers, Swatch Group, Christian Dior, and Pandora as my comparables. I have run into the issue that three of these companies, being based outside of the us, submit financial reports on a semester rather than quarterly basis. Is this something I can work around? Particularly with regards to the LTM section of the analysis - as the LTM for these companies will be about 3 months less recent than the LTM of the quarterly report companies. I would appreciate any advice and other ideas for comparable companies
27 Oct 2015
I am looking for the best resource for information and multiples on lower-middle market precedent transactions. Specifically, multiples on deals that do not publicize the terms of the deal through a press release. Thanks in advance for the guidance.
02 Jan 2012
How's it going, I was assigned to do a comparable company analysis for homework. However, I'm not sure if I did it correctly. The instructions were very vague so I had to do research and do the best(?) I can. This is the first time I attempt doing this, so I am looking for your opinions, suggestions, tips, etc. If my work is bad please tell me so I can try to correct it. Thanks in advance.
23 Mar 2017
Hey everyone, New to WSO here. I am doing a comparable company analysis and had a little question. I noticed for one of the comps that an 8K came out since the latest 10q and reported a recent acquisition (all cash transaction). Obviously this will affect cash, debt (if taking on acquired company's debt), goodwill, outstanding shares, etc. I am googling around and can't seem to find such an example to make sure I'm doing it correctly. Would anyone be able to point me to a book or example that walks through how to adjust for a recent acquisition for a comp analysis? Thank you!!
18 Mar 2017
Fellow monkeys, While operating KPIs are straight-forward (utilization %-age, rental duration, rentals/car, $/rental, daily $/rental), I struggle with identifying what the most common financial metrics are for comparison within the industry. ("financial" meaning financial statement derived). I heard about EBITAR being used in the car-rental industry; this would make sense to me as long as it is adjusted for differences in the ratio of operating leases to finance leases between firms, i.e. reclassifying all finance leases as operating leases (opposite to IASB/FASB/CFA recommendations) in order to get any sort of lease expense included in this measure. I must admit though, that I'm clueless as to how car-rental companies actually get their cars. Therefore, my questions are:
18 Dec 2014
Hello, I have performed a relative/comparable valuation on an Internet/Tech company, however, I am struggling to find appropriate insight as to which price multiples one should specifically use when calculating these multiples. I know the predominantly internet/tech companies have negative earnings, however, this does not apply here as all earnings are positive. I have currently calculated the following ratios: P/E, P/BV, P/CF, P/S, EV/EBITDA (The EV/EBITDA and P/E ratios are outliers to the dataset, with the P/E multiple providing an answer that was minute, whilst the EV/EBITDA was exorbitantly large in comparison). Your help would be greatly appreciated!
20 May 2014
This may be a stupid question, but do you use Unilever plc or Unilever NV in a comparables model? Company I am valuing is in personal hygiene in America. I am thinking of just keeping either ULVR or UNA in the public comps universe because they are huge conglomerates... Also... anyone else know any small-cap personal care companies? I ran a few screens, but most of the companies coming up don't really match.
10 Mar 2012
The most common way to value a company is through the use of comparable analysis. This method attempts to find a group of companies which are comparable to the target company and to work out a valuation based on what they are worth. The idea is to look for companies in the same sector and with similar financial statistics (Price to Earnings, Book Value, Free Cash Flow, EBITDA etc) and then assume that the companies should be priced relatively similarly. Comparable analyses are frequently referred to as "comps." The process for how to do a comparable analysis is as follows: Find a selection of comparable companies Choose and calculate the appropriate multiples for each company
29 Sep 2011