Building a Comparable Companies Table

The arithmetic in a comps table takes minutes. Deciding which twelve companies belong in it, and being able to say why each one is there when someone pushes back, is the work the table actually rests on.

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1,000 seats total 204 left

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Six things you will be able to do

Go past the screen output. Learn to justify every name in the table, and every one you left out.

01 Screen the starting universeSector, size and geography, then the names the screen wrongly includes.
02 Test each peer four waysBusiness model, growth, margin and capital intensity, applied one name at a time.
03 Build enterprise value properlyDebt, cash, minorities and leases, so the numerator matches the denominator.
04 Calendarise and clean the metricsAlign year ends, strip one offs, and make the multiples comparable at all.
05 Choose median over meanHandle outliers deliberately, and know which multiple suits the business.
06 Defend the set out loudAnswer why this name is in, why that one is out, without reopening the work.

What changes after this course

You stop presenting a table of multiples and start defending a peer set, name by name, with a reason ready for every inclusion and every cut.

A peer set you can defend, with every inclusion and exclusion reasoned

Enterprise value and metrics built so the multiples are genuinely comparable

A multiple that means something, and a clear answer when it is challenged

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