Episode 23: Peer Groups: Quantitative Assessment

 SUMMARY

This episode of The EC Minute takes a look at the quantitative assessment that goes into creating, reviewing and updating a company’s peer group. Using quantitative metrics, companies typically generate a list of companies that are similar to them. Companies often use ranges of 1/3x to 3x or 1/2x to 2x in applying the metrics they decide to use.¬† Most often, these metrics are run against companies in the same or similar GICS industry group(s). The goal is to generate a list of 25-50 potential peer companies that can then be refined using a qualitative assessment to derive a comparator/peer group consisting of 15-20 companies.

DOWNLOAD SLIDES

Click here to download the slides for Episode 23.