# Comparable Company Analysis

*Corporate Finance & M&A — Finicade finance glossary*

Comparable company analysis values a business against the multiples of similar listed companies. It's fast, market-based and circular — it tells you what the market pays for peers today, which is worthless if the whole sector is mispriced. The judgement is entirely in the peer set: comparability on growth, margin and capital intensity matters far more than sharing an industry label.

**Also known as:** comps, trading comparables, peer analysis

**Related terms:** [Valuation Multiple](https://finicade.com/glossary/valuation-multiple), [EV/EBITDA](https://finicade.com/glossary/ev-ebitda), [P/E Ratio](https://finicade.com/glossary/p-e-ratio), [Precedent Transactions](https://finicade.com/glossary/precedent-transactions), [Discounted Cash Flow (DCF)](https://finicade.com/glossary/dcf)

Source: https://finicade.com/glossary/comparable-company-analysis