§ 01
AAPL — P/E, EV/EBITDA, Market Cap. Open AAPL on the Ledge to see current values.
§ 02
| Criteria | Ideal Comp | Red Flag |
|---|---|---|
| Industry | Same sub-industry (e.g., SaaS, not just ‘tech’) | Different business model |
| Size | Market cap within 0.5x–2.0x | 10x size difference |
| Growth | Similar revenue growth rates | >10pp growth gap |
| Margins | Similar profitability profile | Profitable vs. pre-profit |
| Geography | Similar market exposure | Emerging vs. developed |
§ 03
In practice, you rarely find perfect comps. You might use 5–8 companies that each match on 3–4 of the 5 criteria. The key is being transparent about which dimensions differ and adjusting accordingly.
§ 04
Pick a company in **Fundamentals** and identify 3–5 peers. Compare their market cap, revenue growth, and EBITDA margins. Which peer is the closest match?
§ 05
You’re valuing a $5B SaaS company growing 30% with 20% margins. Which is a better comp?
§ 06
§ 07
You're valuing a mid-cap software company via comps. Which peer group is MOST problematic?
Five questions · AI feedback
Sit with the ideas.
You are valuing Shopify (e-commerce software, $70B market cap, 25% revenue growth). Which is the best comp group?
Why: