Comparable Company Analysis: Trading Comps, Multiples & Precedent Transactions
Value a company like an equity analyst: screen a peer set, bridge equity value to EV with the treasury stock method, calendarise LTM figures, summarise multiples without outliers, apply them to the target, add precedent deals and control premiums, draw the football field and sanity-check with a growth regression, in 8 graded labs.
The first lesson is free — no account needed.
About this course
A comparable company analysis course that values one fictional listed company, Quillon Software, with trading comps and precedent transactions in a spreadsheet, for investment banking and equity research candidates, corporate development staff and finance students. You screen twelve listed peers against clear criteria, calculate diluted shares with the treasury stock method and bridge equity value to enterprise value with debt, cash, non-controlling interests and associates, calendarise figures to LTM and calendar years, summarise EV/Revenue, EV/EBITDA and P/E with medians, quartiles and an outlier-free mean, turn them into a value per share range, add precedent deals and control premiums, draw the football field with a stacked bar chart and sanity-check with a growth regression. Fictional companies, illustrative figures, educational only, not investment advice. The first lab is free.
Lessons
- Building the Peer Set: Screening CriteriaFree
- Equity Value to Enterprise Value: Diluted Shares & the Bridge Pro
- Calendarising: LTM and Calendar-Year Financials Pro
- Multiples: EV/Revenue, EV/EBITDA & P/E with Median, Quartiles and Outliers Pro
- Applying Multiples to the Target: the Implied Value Range Pro
- Precedent Transactions & the Control Premium Pro
- The Football Field: Stacked Bar Trick for Valuation Ranges Pro
- Sanity Checks: Growth-Adjusted Multiples & Regression Pro