Trading comparables introductory

Participants in this Analyst Training Program module are introduced to preparing multiples using real company data and a case study including a range of international companies. Initially a large group of companies is analyzed and a smaller "comparable set" is identified as close comparables to the target company.

We focus on where to find data in published financial data and equity research reports, how to clean the raw data, and finally documenting and checking the output.

• Screening companies to identify a suitable comparable set

Calculating the company''s value

• Number of shares and value of share options
• Equity value
• Net debt calculations
• Enterprise value

Calculating the earnings numbers

• Cleaning non-recurring items from earnings and resulting tax adjustment
• Calendarization issues
• Last-twelve months analysis

Calculating a range of forward looking and historical earnings multiples

• Revenue
• EBITDA
• EBIT
• PE
• PEG
• Other value driver metrics
• Operating and credit ratios
• Troubleshooting and checking the output
• Applying the results