Predefined lists of comparable companies
To run a comparable company analysis, you must start building a peer group consisting of companies of similar size, operating in the same industry, and possibly from the same region. Then you can compare a company’s multiples and ratios to those of the companies belonging to its peer group.
With Infront Analytics Platform, this process is greatly facilitated thanks to the provision of predefined lists of comparable companies for any company. Those predefined lists, made of 15 comparable companies each, are generated with a tool called "Peer Tracker" that compares the industry sector footprint of all companies.
Three predefined lists of comparable companies are provided in the "Company Peers" view, each one with a different geographic focus:
Element | Description |
---|---|
International Peers | Closest comparable companies worldwide. |
Regional Peers | Closest comparable companies in the same region as the selected company. |
Domestic Peers | Closest comparable companies in the same country as the selected company. |
In the "Comparable Analysis" views of the "Companies" interface, the selected company is by default compared to its predefined international list of comparable companies. You can select any other predefined or personal list in "Active List".
The degree of relevance of predefined lists can vary depending on the company considered. It is indeed not always possible to find good comparable companies using industry classifications, for example, for large companies with activities in multiples sectors or conversely small companies operating in highly specialized subsectors.