lease tell me detailscomapany comparables and transaction co

pankaj
Finance Junkie
Posts: 61
Joined: Fri Aug 03, 2012 11:24 am

lease tell me detailscomapany comparables and transaction co

Postby pankaj » Thu Mar 07, 2013 9:31 am

Hello Sir i did not understand the concept of company comparables , and transaction comparables. Please tell me in detail what is these, How we search it and what is the final interpretation and analysis we pick from these analysis to value a complany.
Also tell me about any site where I can read about it in more details like what is this, how we find it , what information we would need for these and the whole analysis portion.


Thanks
Pankaj

pankaj
Finance Junkie
Posts: 61
Joined: Fri Aug 03, 2012 11:24 am

lease tell me detailscomapany comparables and transaction co

Postby pankaj » Mon Mar 25, 2013 12:37 pm

Comparable company analysis uses the market data from similar firms and then adds a takeover premium to find the estimated value for the target company.
Where as, comparable transaction analysis uses deal price (of recent M&A) for companies similar to target company to find the estimated value for the target. Remember, in transaction analysis we use actual deal price, so there is no need to add takeover premium separately.

The information that is required to carry out these kind of analysis are
Price multiples ( like PE, PB, PS etc)
Recent M&A Transaction Details ( deal price )
Take-over premium paid in recent M&A Deals

Hope this helps!


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