Recorded sale prices and deal terms from recently closed transactions involving businesses of similar industry, size, and geography. Analysts use comparable transactions to establish market-derived valuation benchmarks, typically expressed as multiples of SDE, EBITDA, or revenue. Transaction databases such as DealStats and BizBuySell aggregate this data. Comps serve as one input in a triangulated valuation alongside income-based methods such as DCF and rule-of-thumb multiples. Data quality depends on sample size, recency, and comparability of the subject business to the transactions in the set. (Also see: Valuation Multiple, SDE, EBITDA, Rule of Thumb.)
Financial Analysis
Comparable Transactions (Comps)
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