Comparable Company Valuation: Core Methods for Financial Analysis

Valuation is the cornerstone of investment banking, equity research, and corporate finance. Understanding how to value a business relative to its peers is an essential skill for any aspiring financial analyst. This text-only course guides you through the entire comparable company analysis workflow. You will progress from fundamental accounting definitions to selecting peer groups, normalizing financial metrics, and applying valuation multiples to determine a target company's implied value, incorporating modern metrics used in today's high-growth sectors. What you'll learn: - Understand the core principles of relative valuation and why it is used in financial markets. - Identify and select comparable peer groups based on industry, size, growth, and financial profile. - Calculate key valuation multiples including P/E, EV/EBITDA, EV/Revenue, and modern growth-tech metrics. - Normalize financial statements by adjusting for non-recurring items to ensure accurate comparisons. - Apply calculated valuation ranges to estimate the implied equity and enterprise value of a target company. - Analyze valuation outputs to draw meaningful conclusions for investment or advisory decisions. The course begins with foundational concepts and key terminology before walking you through step-by-step calculations and practical written exercises. You will read clear explanations, analyze mock financial statements, and practice building relative valuation frameworks. Designed for beginners in finance, business students, and aspiring analysts, this course requires no prior valuation experience. Start building your financial analysis toolkit today.