Fundamental Glossary / Valuation Methods
Comparable Company Analysis (CCA)
A relative valuation built from the trading multiples of a chosen set of listed peers.
Formula
Median peer EV/EBITDA, P/E, or another multiple, applied to the subject company's metric. Adjust for net debt, minorities, and surplus cash to reach equity value per share.
What it means
CCA is the trading-comps method. The peers are companies, not completed deals. The multiples are today's market prices.
The quality of the work is the quality of the peer set. Same industry is not enough if growth, margins, and leverage differ.
How to read it
A discount to the peer median is a starting observation. It is an opportunity only if the discount is wider than the differences in growth and risk justify.
What to watch
Do not apply a peer EV/EBITDA to the subject's EBITDA and then forget to subtract the subject's own net debt. That mistake values the equity as if it were the whole firm.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.