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".
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