Optimal equity valuation using multiples: The number of comparable firms
研究了在基于倍数进行股权估值时，随着用于估计估值倍数的可比公司数量增加，估值准确性的变化。发现使用10家紧密可比公司与使用整个行业所有公司平均准确性相当，使用5家可比公司准确性损失不大。
Abstract We examine how the accuracy of a multiples‐based valuation changes as the number of comparable firms used to estimate the valuation multiple increases. Our research is motivated by a contrast between the approach followed by practitioners, who typically use a small number of closely comparable firms, and the academic literature which often uses all firms in an industry. Using a simple selection rule based on growth rates, we find that using 10 closely comparable firms is as accurate on average as using the entire cross‐section of firms in an industry. The loss of accuracy from using five comparable firms rather than 10 firms or the entire industry is not great.