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Why are Medians being used instead of Averages for the Peer Metrics?
Why are Medians being used instead of Averages for the Peer Metrics?

peer medians, peer average, peer metric

Updated over 2 years ago

Valutico uses the median for calculations for Peer Metrics, as it is less sensitive to extreme values. For instance, having a large outlier multiple in your peer group greatly impacts the average, but not the median. This gives you a more stable number to work with.
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Of course, your Median will be impacted by the Peers you select. You can check the Benchmarking Tab on the Peer Selection screen to check if you have any unexpected outliers that may be skewing your data.

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