comparables

name	comparables
description	Perform a Comparable Company Analysis (Comps) to value a company relative to its peers.

Comparable Company Analysis (Comps)

Goal

Value a target company by comparing its trading multiples (EV/EBITDA, P/E, P/S) to a set of similar peer companies.

Steps

1. Select Peers

   • Identify 3-5 public companies in the same industry/sector with similar size/operations.
   • For Brazil: Prioritize other B3 companies first, then global peers if none exist.
   • Example (PETR4): Peers could be PRIO3, RRRP3 (local) or Exxon, Chevron (global).
   • Example (WEGE3): Peers could be Siemens, ABB, Rockwell Automation.

2. Retrieve Multiples (Current)

   • Use financial_metrics or financial_search to get:
     • EV/EBITDA (Enterprise Value / EBITDA)
     • P/E (Price / Earnings)
     • P/S (Price / Sales) - useful for high growth/unprofitable cos.
   • Important: Use Forward (NTM) multiples if available, otherwise TTM (Trailing Twelve Months).

3. Calculate Peer Averages

   • Create a table of peers and their multiples.
   • Calculate the Mean and Median for each multiple.
   • Exclude outliers (e.g., negative P/E or >100x if others are 10x).

4. Apply to Target

   • Get the target company's financial metrics (EBITDA, Net Income, Revenue).
   • Multiply the peer average multiple by the target's metric to get implied value.
   • Implied Share Price:
     • (Implied Market Cap) / Share Count
     • OR if using EV/EBITDA: (Implied EV - Net Debt) / Share Count.

Output Format

Peer Group Table

Peer	Ticker	EV/EBITDA	P/E	P/S
Peer 1	Ticker1	5.2x	8.5x	1.1x
Peer 2	Ticker2	6.1x	10.2x	1.4x
Median		5.6x	9.3x	1.2x

Implied Valuation (Target: XXXX)

Metric	Target Value	Peer Multiple	Implied Enterprise Val	Implied Share Price
EBITDA	R$ 10B	5.6x	R$ 56B	R$ 25.40
Earnings	R$ 4B	9.3x	N/A	R$ 28.10

Conclusion: The target (Current Price: R$ 22.00) appears Undervalued based on peer multiples.