Comparable Transaction

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Dictionary Says

Definition of 'Comparable Transaction'

A method of valuing a company that is for sale. Comparable transactions considers the past sales of similar companies as well as the market value of publicly traded firms that have an equivalent business model to the company being valued. To get a more accurate valuation, more than one comparable transaction should be used. This method of valuation can help identify the current value and potential growth for a company.
Investopedia Says

Investopedia explains 'Comparable Transaction'

Comparable transactions look at multiples such as the EV/EBITDA ratio, among others, to determine a value. The difficulty with this approach is the limited availability of financial data regarding past transactions between private companies. A comparable transaction approach is generally used in conjunction with other valuation techniques including the discounted cash flow and other comparable company analysis techniques.
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'Comparable Transaction'

  • Purchasing A Short-Sale Property

    http://www.investopedia.com/articles/pf/08/purchase-short-sale-property.asp
    ... Do your own comparable market analysis. The bank is facing a losing transaction,
    so it will want to minimize its losses and sell the property as close to fair ...

  • Avoiding "Prohibited Transactions" In Your IRA

    http://www.investopedia.com/articles/retirement/03/073003.asp
    ... Plan If you sell property to your IRA, the sale is a prohibited transaction. ... the
    asset manager receives for managing IRA assets should be comparable to the ...

  • The Nitty-Gritty Of Executing A Trade

    http://www.investopedia.com/articles/03/012403.asp
    ... and exchanges require that the brokerage firms complete the trades at prices comparable
    to those of the market. Agency Trading An agency transaction is the ...

  • Shaw Communications Intrigues Investors

    http://stocks.investopedia.com/stock-analysis/2011/Shaw-Communications-Intrigues-Investors-SJR-RCI-TU-VZ-T-BCE0117.aspx
    ... at a cost of around C$2 billion in 2010 and completed the transaction this year ... Prior
    to the dividend hike, Shaw yielded 4.2% , comparable to competitors Rogers ...

  • Acquire A Career In Mergers

    http://www.investopedia.com/articles/financialcareers/08/merger-acquisition-career.asp
    ... also look at similar companies within the industry and assess comparable multiples ...
    with the goal of successfully realizing the benefits of the transaction in a ...

  • Vacation Property Walkthrough: International Vacation Properties ...

    http://www.investopedia.com/university/vacation-property-walkthrough/vacation-property-walkthrough5.asp
    ... international vacation properties may be much more affordable than comparable
    properties in ... is of the upmost importance to ensure the transaction is conducted ...

  • Selling Your House? Avoid These Mistakes

    http://www.investopedia.com/articles/mortgages-real-estate/08/home-seller-mistakes-selling-house.asp
    ... estate attorney to help you with the finer points of the transaction and escrow ... Remember
    the comparable market analysis you did when you bought a home to figure ...

  • 5 Reasons Why You Still Need A Real Estate Agent - Investopedia. ...

    http://financialedge.investopedia.com/financial-edge/0510/5-Reasons-Why-You-Still-Need-A-Realtor.aspx
    ... cost far more than an agent's commissions by the time the transaction is complete. ...
    you will price it based on the sale prices of other comparable properties in ...

  • Money Market Mutual Funds: A Better Savings Account

    http://www.investopedia.com/articles/mutualfund/07/money_market_savings.asp
    ... Also, there may be balance requirements or transaction fees so make sure ... Federal
    Reserve tutorial.) Accessibility Money market funds are comparable to savings ...

  • How After-Tax Rollovers Affect Your IRA

    http://www.investopedia.com/articles/retirement/04/092904.asp
    ... cases, retirement-account owners realize the results of the rollover transaction
    only after ... assets can be advantageous for you; in fact it is comparable to you ...

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