Comparable Company Analysis
Comparable Company Analysis (CCA) is a method used to assess a company's value by comparing key metrics, such as EBIT, EBITDA, and others, with those of similar companies in the same industry. The underlying assumption of CCA, also known as 'Comps,' is that companies within the same sector or industry will have comparable financial metrics. This method helps investors determine a company's relative valuation by evaluating how it performs in comparison to its peers in the market.
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