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Benchmarking
Updated over 7 months ago

The Benchmarking tab offers a comparative analysis of your company's financial forecasts against industry peers. Beyond median figures, it features the lower (25th percentile) and upper (75th percentile) benchmarks, providing a spectrum of performance within your sector. The lower quartile represents a baseline exceeded by most peers, giving context to the competitive landscape's entry point. The upper quartile reflects a goal not achieved by three-quarters of the group, indicating top-tier performance.

This tool also helps gauge each peer's comparability to your company by analyzing financial metrics up to the median, which depicts typical industry performance. The integration of these percentiles enables users to place their company on the industry performance curve, spotting significant deviations. Such insights empower a strategic evaluation of where a company stands amongst its peers, guiding informed business decisions and financial planning.

Generally, it is advisable (as described in detail in our white paper on the topic) to include peers that have similar operating metrics to the target company, such as Sales growth rates, EBITDA margins, etc. The inclusion of companies with materially outlying metrics needs to be investigated and potentially reconsidered.

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