Trading comparables is a market based valuation methodology similar to transaction comparables. Comparable companies are used to calculate multiples based on value drivers of the business. There are many items included in the Equity to EV Bridge calculation, both EV and equity value are calculated as a process.

What are trade comps?

Trading comparables (trading comps) are valuation methods that use ratios to value a company by assuming that it should be worth similar multiples to similar listed companies.

What are trading and transaction comps?

What is “Transaction Comparables”? Transaction comparables (also referred to as deal comps or precedent transactions) is a relative valuation methodology similar to trading comparables. Instead of the traded share price, the price paid in an M&A transaction is used for the analysis.