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Comparable Definition

comparable – n : also comp or comps, a company in the same or a similar industry, and/or at the same or similar stage of development, to which a startup can compare itself regarding various key operating ratios and valuation metrics. Comparables are useful for planning startup costs and common operating ratios by providing entrepreneurs examples of the financial performance experienced by established companies in the same or similar lines of business. Comparables are also used to derive valuations of private and public companies by performing a comparable companies analysis.

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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
Copyright © 2004-2006 CompanyCrafters LLC

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