Valuation: Comps & Precedents
When you spread a calendarization or stub-period adjustment for comps, what problem are you solving?
Model answer
Companies have different fiscal year-ends, so their 'LTM' or 'FY' periods don't line up in time. Calendarization adjusts each comp's financials to a common period (e.g., all to a calendar-year basis)…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.
More from Valuation: Comps & Precedents
- What are the main valuation methodologies?
- Why might trading comps and precedent transaction comps give different values?
- Why is EV/EBITDA often preferred over P/E for comparing companies?
- What are the three primary valuation methodologies a banker uses, and in one line each, what is each based on?
- Which of the standard valuation methodologies tend to produce the HIGHEST and the LOWEST values, and why?
- Walk me through how you perform a comparable companies analysis.