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Comparable Company Analysis Formula Sheet

Every formula in the track on one page. Print it and keep it next to you.

The matching principle

Enterprise value multiples
EVRevenue,  EVEBITDA,  EVEBIT\dfrac{\text{EV}}{\text{Revenue}},\; \dfrac{\text{EV}}{\text{EBITDA}},\; \dfrac{\text{EV}}{\text{EBIT}}

Pre-interest metrics, to all investors.

Equity value multiples
PriceEPS,  PriceBook\dfrac{\text{Price}}{\text{EPS}},\; \dfrac{\text{Price}}{\text{Book}}

After-interest metrics, to equity.

From multiple to value

Implied enterprise value
Implied EV=Peer Median Multiple×Target Metric\text{Implied EV} = \text{Peer Median Multiple} \times \text{Target Metric}
Implied equity value
Equity=Implied EV−Net Debt\text{Equity} = \text{Implied EV} - \text{Net Debt}
Implied share price
Price=Equity ValueShares\text{Price} = \dfrac{\text{Equity Value}}{\text{Shares}}