Comparable company analysis values a business at the multiples investors pay for similar companies. Enter peer multiples and the target’s metrics to see implied enterprise value, equity value and a per-share value range.
How it works
Value a company from the trading multiples of comparable peers: EV/EBITDA, P/E and EV/Revenue, with interquartile ranges and a blended value per share.
EV (EV/EBITDA) = Multiple × EBITDA; Equity = EV − Net debt
Equity (P/E) = Multiple × Net income; EV = Equity + Net debt
EV (EV/Revenue) = Multiple × Revenue
Value per share = Equity value ÷ Diluted sharesCommon uses
- Cross-checking DCF valuations
- Pricing acquisitions, fundraisings and fairness opinions
- Benchmarking a company’s market valuation against peers
Worked example
The calculator above opens with this example. Change any input to see the results update instantly, or select Reset to return to these figures.
| Peer multiples | Peer A | 9.8 | 17.5 | 1.9 Peer B | 11.2 | 19.8 | 2.3 Peer C | 8.6 | 15.1 | 1.6 Peer D | 10.4 | 21.0 | 2.1 Peer E | 12.1 | 18.4 | 2.6 |
| Target EBITDA | $14,500,000 |
| Target net income | $6,800,000 |
| Target revenue | $72,000,000 |
| Target net debt | $28,000,000 |
| Diluted shares outstanding | 8,000,000 |
| Blended value per share | $15.46 |
| Value range per share | $13.60 – $17.20 |
| Blended enterprise value | $151,706,667 |
| Blended equity value | $123,706,667 |
P/E produces equity value directly; enterprise value adds net debt back.
Interpreting the results
- Use the median rather than the mean, since one outlier peer can distort an average multiple.
- Select peers by business model, size, growth and margin profile, not only by industry code.
- Apply multiples to the same metric basis as the peers: trailing with trailing, forward with forward.
Frequently asked questions
Why use the median multiple instead of the average?
The median is less affected by outliers. A single peer trading at an unusual multiple because of a pending deal or a one-time earnings swing can distort the average significantly.
What is the difference between EV and equity multiples?
Enterprise value multiples such as EV/EBITDA compare the value of the whole business with metrics available to all capital providers. Equity multiples such as P/E compare equity value with earnings after interest, so they are affected by leverage.
How do I choose comparable companies?
Select peers with similar business models, growth, margins, size and risk, not just the same industry classification. Five to ten good comparables are usually more useful than a long list of loosely related ones.
Related calculators
- DCF Valuation Calculator: Enterprise value, equity value and value per share from free cash flow.
- WACC Calculator: Weighted average cost of capital with CAPM cost of equity.
- CAPM Cost of Equity Calculator: Required return on equity with optional beta relevering and size premium.
- LBO Quick Model: Sponsor IRR and MOIC with debt paydown and a value-creation bridge.
- Altman Z-Score Calculator: Bankruptcy-risk score and zone for public, private and non-manufacturing companies.