Pharmaceutical Industry Comps Template

Pharmaceutical Industry Comps Template

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.

Comparable Company Analysis

Comparable company analysis is a valuation method that uses the financial ratios of different businesses to assess and value a company. In this case, the company that is being valued is Roche Holding AG. Comps analysis is a relative form of valuation rather than an intrinsic form of valuation such as a discounted cash flow analysis.

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:

• Industry Classification
• Size
• Geography
• Growth Rate
• Profitability
• Capital Structure

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:

• Similar size and geographical coverage
• Similar size and different geographical coverage
• Different size and similar geographical coverage
• Companies with similar business models

Download CFI’s editable Excel template to perform your own pharmaceutical comps analysis and advance your valuation skills today.

To learn more about different types of valuation techniques check out CFI’s Financial Modeling and Valuation Analyst® certification program

Additional Resources

For more resources, check out CFI’s Business Templates Library to download numerous free Excel modeling, PowerPoint presentation, and Word document templates. Also, check out all our financial modeling resources and Excel resources.