Comparable Company Analysis (CCA)

Comparable Company Analysis (CCA) is a valuation method used to estimate a company's value by comparing it to similar companies in the same industry. It looks at key financial metrics like revenue, profit, and valuation multiples (such as Price-to-Earnings ratio) to determine how the market values these peers. By analyzing these comparisons, we can infer a reasonable value for the company in question. This method provides a market-based perspective, helping investors and analysts assess whether a company is over- or undervalued relative to its peers.