Comparability scores

Comparability score is shown in the "Company Peers" view for each comparable in the panel.

The comparability score represents the degree of similarity between the sector footprint of a peer compared to that of the selected company.

Comparability scores are useful to assess the quality of proposed comparable companies. The higher the score, the more comparable. A percentage over 50% is a sign of good comparability.

To understand how comparability scores are calculated, you need to open the Peer Tracker search panel clicking the "Peer Tracker" vertical bar located on the left. The "Peer Tracker" shows the sector footprint for the selected company, that is, all sectors from all available industry classifications in which the company is included. The weight assigned to each sector corresponds to the importance given to the companies belonging to that sector for the calculation of the peer group: the smaller the number of companies in the sector (this number appears in a message when hovering your mouse over a sector name), the higher the predefined weight.

"COMP"and "REVCOMP" are two special sectors which may or may not be available in Industry Sectors for your company:

• "COMP" includes all peers that the company lists as competitors in its annual report.
• "REVCOMP" includes all peers that include the company as a competitor in their annual reports.

The comparability score for a peer is calculated comparing the sector footprint of that peer with the one of the selected company. A score of 100% indicates that the sector list is the same for both companies.