Company comps are companies that are comparable with or peers of the company you are valuing. Think carefully about what the company you're looking to compare is engaged in and what aspect(s) of their business you want to consider and compare
Criteria used to generate a list of comps may include one or more of the following:
Once you've generated an initial list of comparable companies, you can then define variables - financial multiples, averages, ratios and benchmarks - to further refine this list.
Both FactSet and Bloomberg will automatically generate a list of comps for you. Use your judgment and critically evaluate these default lists because: