Comparability scores

Modified on Mon, 10 Aug, 2020 at 4:33 PM

The comparability score represents the degree of similarity between the sector footprint of a peer compared to that of the selected company.

Comparability score are shown in the Company Peers view for peers listed in the panel entitled either Predefined Comparables or PeerTracker Results.

 

cd_cp_comparability1.png

 

Comparability scores are useful to assess the quality of proposed comparable companies, the higher the score, the more comparable. A percentage over 50% is a sign of good comparability.

To understand how comparability scores are calculated, you need to open the Peer Tracker search panel clicking the PeerTracker vertical bar located on the left.

 

cd_cp_comparability2.png

 

The Peer Tracker shows the sector footprint for the selected company, i.e. all sectors from all available industry classifications in which the company is included. The weight is assigned to each sector corresponds to the importance given to the companies belonging to that sector for the calculation of the peer group: the smaller the number of companies in the sector (this number appears in a message when hovering your mouse over a sector name), the higher the predefined weight.

 

cd_cp_comparability3.png

 

COMP and REVCOMP are two special sectors which may or may not be available in Industry Sectors for your company:

  • COMP includes all peers that the company lists as competitors in its annual report;
  • REVCOMP includes all peers that include the company as a competitor in their annual reports.

The comparability score for a peer is calculated comparing the sector footprint of that peer with the one of the selected company. A score of 100% indicates that the sector list is the same for both companies. The table below shows how weights impact the score calculation.

 

cd_cp_comparability4.png

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