Comparable Company Analysis - CCA
Categories: Company Valuation, Investing, Managed Funds, IPO, Banking
CCA is the practice of valuing a business based on the key valuation metrics of a comparable company or companies.
Key metrics? Things like revenues, revenue growth, profits, profit margins, the balance sheet, patents, and other intellectual properties, as some market-sensitive, wisened being values them. The impetus behind using CCA is the drive to compare apples to apples and not apples and...kumquats.
However, there are many varieties of apples. Some make a good pie, some don’t.
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