Introduction
Peer selection plays an important role throughout the valuation process. Publicly listed comparable companies are used not only to derive market valuation multiples, but also to support cost of capital calculations, financial benchmarking, and other valuation analyses. Valutico assists with this process by recommending comparable companies based on multiple comparison criteria.
Recommendation Sources
Peer recommendations are available on the Peers screen under the Suggestions section.
Click on Show Suggestions from the left panel of the Peers screen.
The Suggestions dropdown allows you to choose how peer recommendations are generated.
Available options include:
Valutico Suggested Peers (default) – Uses Valutico's recommendation engine to identify and rank comparable companies based on multiple comparison criteria and with scores.
Similarity of Companies – Suggests peers based on similarity to a selected public company.
Analysts Overlap – Recommends companies that are commonly covered by the same equity research analysts.
What Other Users Selected – Suggests peers based on companies selected by other Valutico users for similar valuations.
Reviewing Valutico Suggested Peers
When the “Valutico Suggested Peers” option is selected, the peers are ranked according to the selected weighting profile.
Recommendation Profiles
You can switch between the available recommendation profiles to view peer rankings based on different comparison priorities:
Overall (default)
Balanced
Financial Profile
Growth Stage
Regional
Pure Business
Custom
Changing the recommendation profile recalculates the comparability scores using the selected weighting criteria.
Recommendation Criteria
The comparability score is calculated by evaluating each suggested company across the following criteria:
Business description
Industry
Products
Region
Same country
Globalization (measured using the KOF Globalisation Index, reflecting a country's economic, political, and social integration)
Size
Availability of multiples
By default, Valutico applies the Overall weighting profile when calculating comparability scores.
Customizing Recommendation Weighting
You can adjust the importance of each recommendation criterion to reflect the priorities of your valuation.
In addition to the predefined recommendation profiles, selecting Custom allows you to assign your own weights to each criterion. Custom weighting profiles can be saved and reused across future valuations.
Understanding the Comparability Score
Each suggested company is assigned a comparability score out of 100, reflecting its overall similarity to the target company based on the selected criteria weighting profile.
Alongside the score, Valutico provides a rationale highlighting the primary factors that contributed to the recommendation, such as similarities or differences in industry, geography, products and services, or company size. This transparency helps you understand why a company was recommended and determine whether it is an appropriate comparable for your valuation.
Geographic Distribution
Select Show Map to display the geographic distribution of the suggested peers, providing a visual overview of where the recommended companies are located.