On the Select Comparables step in the report generation sequence, enter the name or URL of one private peer and two publicly traded comparable companies. The private peer should be the closest private competitor to the target company or otherwise a company utilizing a very similar business model. The two publicly traded comparable companies should be the closest competitors or business models to the target company in the publicly traded company universe. For public comps, it is best to identify “pure-plays” (i.e., companies that narrowly focus on the same business as the target company) wherever possible. When pure-play comps are not available, companies in businesses that share the same key economic drivers, customers, inputs, and end markets can make for good selections.

Before clicking “Generate comparables” be sure that you have correctly populated on the “Company Info” tab the target company name and URL, sector, industry, year founded, and country. On the “Input Financials” tab, be sure you have entered the finalized set of financial projections. Finally, ensure you are satisfied with your selection of private peer company and user selected public comparables. Once you generate the recommended comparables, there is no ability to change the list of Cyndx recommended comparables. You can still edit financials after generating comps, but any changes will not affect the recommmended comps list.

Once you have generated the comparables list, you can select comparables to use in the valuation. You can assess the relevance of each comparable based on the description, geographic location, enterprise value, and multiple data provided. Note that the private peer is only included in this list for reference. The two initial user selected public comps are automatically included in the list to be used in the analysis. You may choose which companies among the Cyndx recommended comps are most similar to the target company in terms of qualitative factors such as market overlap, role in the value chain, operational characteristics, and competitive position as well as quantitative factors such as KPI performance, normalized margins, growth rates, and capital structure composition. Note that the public comps will often be far larger and somewhat slower growing than growth stage private companies, so keep that in mind when making selections.