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
Ask Size
The ask size refers to the number of units of a security that an investor...
Abridged Prospectus
An abridged prospectus is a shortened version of a company's full prospectus. According to SEBI...
Equity Market
The equity market is where shares are traded, capital is raised, and stocks are offered,...
Backtesting
Backtesting involves testing trading strategies or models against historical data to evaluate their effectiveness. It’s...
Basis Trading
Basis trading refers to futures trading strategies that focus on the difference between the spot...
Free Cash Flow
Free cash flow (FCF) in accounting and earnings reports represents the cash a company retains...
