Comparable companies: building a peer set that holds up
The multiples desks actually use. How to build a peer set that survives the questions in a screening interview. Applied to Indian mid-caps.
By VK Investing6 SHEETS · EXCEL · 5,400 WORDS WALK-THROUGH
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Comparable companies analysis is misused more often than any other valuation technique. Done well, it is a discipline on your DCF. Done badly, it is a tautology — the market is right because the market says it is.
The model walks through peer set construction with real Indian mid-cap examples, showing why three plausible peers were excluded and why the resulting valuation range should be read as a band of plausibility rather than an arithmetic average.
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