Valuation: Comps & Precedents
What is a 'pure-play' comparable, and why do bankers prefer pure-plays in a comp set?
Model answer
A pure-play is a company that operates essentially in a single business line - the same one as your target - rather than a diversified mix of segments. Bankers prefer pure-plays because their trading…
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More from Valuation: Comps & Precedents
- What are the main valuation methodologies?
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