You are now completing a Comparable Company Analysis (“CCA” or “Public Comps”) for this same company, and you’re trying to decide on the proper screening criteria. You run several screening reports on Capital IQ and count the number of companies produced by each criteria set (described below).The U.S.-based company you’re valuing has an LTM Revenue of approximately $10 billion with an EBITDA of $1.5 billion.Which of the following is the BEST screen for this company’s Public Comps?a. U.S. and Canadian steel manufacturing companies with LTM Revenue above $5billion USD; 15 companies in the set.b. U.S., Canadian, and European steel manufacturing companies with LTM EBITDA above $1 billion USD; 12 companies in the set.c. U.S. steel manufacturing companies with LTM Revenue above $5 billion and a Current Enterprise Value of less than $10 billion; 6 companies in the set.d. U.S. steel manufacturing companies with LTM Revenue above $5 billion; 8companies in the set.e. It’s impossible to answer this question without knowing the median valuation multiples of the companies in each screening report.
You are now completing a Comparable Company Analysis (“CCA” or “Public Comps”) for this
same company, and you’re trying to decide on the proper screening criteria. You run several
screening reports on Capital IQ and count the number of companies produced by each
criteria set (described below).
The U.S.-based company you’re valuing has an LTM Revenue of approximately $10 billion
with an EBITDA of $1.5 billion.
Which of the following is the BEST screen for this company’s Public Comps?
a. U.S. and Canadian steel manufacturing companies with LTM Revenue above $5
billion USD; 15 companies in the set.
b. U.S., Canadian, and European steel manufacturing companies with LTM EBITDA
above $1 billion USD; 12 companies in the set.
c. U.S. steel manufacturing companies with LTM Revenue above $5 billion and a
Current Enterprise Value of less than $10 billion; 6 companies in the set.
d. U.S. steel manufacturing companies with LTM Revenue above $5 billion; 8
companies in the set.
e. It’s impossible to answer this question without knowing the median valuation
multiples of the companies in each screening report.
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