Comparable Company Analysis - CCA


DEFINITION of 'Comparable Company Analysis - CCA'

A process used to evaluate the value of a company using the metrics of other businesses of similar size in the same industry. Comparable company analysis (CCA) operates under the assumption that similar companies will have similar valuations multiples, such as EV/EBITDA. Analysts will compile a list of available statistics for the companies being reviewed, and will calculate the valuation multiples in order to compare them. Comparisons often involve creating benchmarks.

Comparable company analysis is often referred to as a company's "comps".

BREAKING DOWN 'Comparable Company Analysis - CCA'

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 use online resources to compare a particular company to its competitors. This information can be used to determine a company's enterprise value and to calculate other ratios used to compare a company to those in its peer group.

  1. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative ...
  2. Ratio Analysis

    Ratio analysis is quantitative analysis of information contained ...
  3. Market Approach

    A method of determining the appraisal value of an asset based ...
  4. EBITDA/EV Multiple

    A financial ratio that measures a company's return on investment. ...
  5. EBIT/EV Multiple

    A financial ratio used to measure a company's return on investment. ...
  6. Stock Analysis

    Stock analysis is a term that refers to the evaluation of a particular ...
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