Comparable company analysis also referred to as comps analysis or just comps is a relative valuation method. CFI’s pharmaceutical industry comps template provides several companies that can be used to value Roche Holding AG, a company in the pharmaceutical industry.
Comps is a useful valuation methodology since it is relatively simple and straightforward to use. There are generally fewer assumptions that need to be made than in other valuation methods. In this pharmaceutical comps template, it is easy to see metrics such as EV/EBITDA and EV/Revenue for the industry.
Choosing Comparable Companies
The most important piece of a comparable company analysis is the selection of businesses that will be used to value the company in question. It is critical to identify and use companies that are most relevant to the company you are trying to value. In this case, companies have been selected to assess Roche Holding AG. In this template, several factors are taken into consideration which include:
This template is looking specifically at the pharmaceutical industry, therefore the industry classification has been matched. This template focuses on industry classification, size, and geography. It also takes into consideration: