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.
Related Terms
Commodity
A commodity refers to physical goods and raw materials such as aluminium, cotton, copper, sugar,...
Bond Market
A bond market is a marketplace where bonds are issued, bought, and sold. Bonds are...
Bottom Line in Finance
In finance, the 'bottom line' refers to a company’s key metrics, such as earnings, profits,...
Commodity Exchange
A commodity exchange is a marketplace where standardized commodities and related derivative contracts are traded....
Contingent Liabilities
A contingent liability is a potential obligation that may arise depending on the outcome of...
Delivery Trading
Delivery trading involves buying/selling a security and settling it by taking/giving delivery. Unlike intraday trading,...
