Introduction
Analyzing comparables (comps) is essential: never evaluate a company in a vacuum. Always compare metrics with competitors in the same sector.
Explication
Each sector has different typical metrics. Tech has 60%+ margins, retail 3-5%. Compare: 1) Margins (Gross, EBITDA, Net), 2) Valuation multiples (P/E, EV/EBITDA), 3) Growth, 4) Balance sheet (debt, cash), 5) Efficiency (ROIC, ROA).
Formule
There is no formula. Methodology:
1. Identify 3-5 direct competitors
2. Extract key metrics
3. Compare vs target company
4. Identify outliers
Exemple
SaaS Analysis: Salesforce vs Competitors | Metric | Salesforce | Adobe | ServiceNow | Average | |---------|-----------|-------|------------|----------| | Revenue Growth | 12% | 10% | 22% | 15% | | Gross Margin | 76% | 88% | 79% | 81% | | EBITDA Margin | 30% | 45% | 28% | 34% | | EV/Revenue | 6× | 10× | 12× | 9.3× | | Rule of 40 | 42 | 55 | 50 | 49 | Observations: - Salesforce: slower growth (12% vs 15% average) - Adobe: higher margins (88% gross, 45% EBITDA) - ServiceNow: faster growth but higher multiple - Salesforce seems undervalued (6× vs 9.3× average) IF it can accelerate growth
Comment l'interpréter
Use of comps: 1. Identify strengths/weaknesses: Company with 10% EBITDA margin in 30% sector = problem. 2. Relative valuation: P/E 15 seems expensive... but if the sector averages 25, it is cheap. 3. Operational Benchmarking: Why does Competitor A have ROIC 25% and we have 15%? 4. Red flags: Company with 5% growth in a 20% sector = losing market share. Common errors: - Compare different sectors (Apple vs Bank of America = useless) - Ignore business model differences (AWS vs Oracle) - Use only multiples without growth/margins context
Points clés
- Never evaluate a company in a vacuum, always compare
- Comps show relative strengths/weaknesses
- Identify 3-5 direct competitors
- Compare: margins, valuation, growth, balance sheet
- P/E 15 can be expensive or cheap depending on the sector
- Red flag: metrics much lower than comps