Introduction
Benchmarking is integrated directly into the Forecast step, providing more nuanced insights within your valuation workflow. This feature allows you to include public and private company data in your analysis for a more comprehensive comparison.
1. Integrated Benchmarking within Forecast
You can access the Benchmarking+ drawer by navigating to the Valuation Flow and proceeding to the Forecast step.
Once you are within any line item (e.g., Net Sales, Operating Expenses), simply click on the benchmarking icon. This enables you to access relevant benchmarking data for the specific line item.
2. Comprehensive Benchmarking Tabs
The Benchmarking+ screen includes several tabs, each representing a different benchmarking scenario:
Best Case
Upper Case (75th Percentile)
Lower Case (25th Percentile)
These tabs allow users to explore various performance scenarios for comparison and analysis.
3. Detailed Comparison Metrics
The screen offers detailed comparisons of your applied metrics against industry benchmarks. These comparisons are segmented by:
Country
Region
Global
This segmentation ensures that the comparisons are tailored to the operational environment of the company, providing more relevant and actionable insights.
4. Customisation and Flexibility
Display Options:
Toggle Table Visibility: You can easily toggle the visibility of the benchmarking table to focus on the most relevant data, whether that’s the benchmark chart or detailed comparison data.
Include in Export: For enhanced reporting, you have the option to include the benchmark chart in your valuation exports, making it easier to present insights to stakeholders.
Edit Applied Metrics:
The only numbers you can manually adjust within the Benchmarking+ drawer are the applied numbers. This gives you the flexibility to fine-tune your data based on insights or specific needs.
5. AI Insights
Click the EVA AI (co-pilot) icon (top-right of the graph) to instantly fetch actionable insights. The AI analyzes public data to summarize your company's performance and provide reasoning that can support or question your forecasts. This feature supports benchmarking insights for Net Sales, EBIT Margin (%), and Capex as % of Net Sales.
Best Practices and User Guidance
1. Peer Selection
When selecting peers for comparison, it is recommended to choose companies with similar operating metrics, such as Sales Growth Rates and EBITDA Margins, to ensure meaningful and actionable benchmarking results. Be cautious when comparing companies with significantly differing metrics.
2. Utilising Contextual Insights
The benchmarking data displayed is based on the selections you made earlier in the valuation setup. This ensures that the insights you receive are contextually relevant and based on the specific parameters you’ve established.