BIWS chapter 1 Exam Questions with Correct Answers| New Update 100% Verified by Expert
what is comp analysis and why comp analysis gets a market benchmark which can be
stacked up against comparable firms.
Reasons Why: its easy to compare x to x.
similar opportunities/risks/performance drivers/risks
How does it compare companies Financial ratios like EV/EBITDA or P/E ratio to create a
multiple range which will give an implied value for the target firm
How do you build a comp list Using public financial information, look at the firms core - what
does it do and what companies are similar based on its business and financial details.
How do you get public info Using public financial information, look at the firms core - what
does it do and what companies are similar based on its business and financial details.
How do you get info if the firm is private Sector reports, research estimates and trade
journals.
what are the 5 business factors you look at SPDGC:
Sector - industry/sub-industry. what are the usual risk/opportunities/volatility.
Products - its g/s
Distribution: How do they sell goods - wholesale/retail.
Geography: where do they sell - worldwide/regional. what macro effects/risks are there.
Customer: Whose the typical buyer.
What financial factors do you look at What are the financial factors: SPRGC: Think also how
does it increase/decrease valuation.
Size - market cap/ NI/ shares. how does that compare to the target? do they share EofS/
Purchasing power.
what is comp analysis and why comp analysis gets a market benchmark which can be
stacked up against comparable firms.
Reasons Why: its easy to compare x to x.
similar opportunities/risks/performance drivers/risks
How does it compare companies Financial ratios like EV/EBITDA or P/E ratio to create a
multiple range which will give an implied value for the target firm
How do you build a comp list Using public financial information, look at the firms core - what
does it do and what companies are similar based on its business and financial details.
How do you get public info Using public financial information, look at the firms core - what
does it do and what companies are similar based on its business and financial details.
How do you get info if the firm is private Sector reports, research estimates and trade
journals.
what are the 5 business factors you look at SPDGC:
Sector - industry/sub-industry. what are the usual risk/opportunities/volatility.
Products - its g/s
Distribution: How do they sell goods - wholesale/retail.
Geography: where do they sell - worldwide/regional. what macro effects/risks are there.
Customer: Whose the typical buyer.
What financial factors do you look at What are the financial factors: SPRGC: Think also how
does it increase/decrease valuation.
Size - market cap/ NI/ shares. how does that compare to the target? do they share EofS/
Purchasing power.
