The Benchmarking tab provides a comparative analysis of your company's financial forecasts against industry peers. This feature goes beyond median figures by incorporating the 25th percentile (lower quartile) and 75th percentile (upper quartile) benchmarks, offering a comprehensive view of industry performance.
Lower Quartile (25th Percentile): Represents a baseline exceeded by most peers, providing context for the entry-level competitive landscape.
Upper Quartile (75th Percentile): Reflects a threshold not surpassed by three-quarters of the group, indicating top-tier performance.
How to Access the Benchmarking Tab
To use the Benchmarking tab:
Navigate to the Business Plan screen.
Go to the Benchmarking tab.
If the Benchmarking tab is not visible:
Click the More button at the top right.
Select ValuPlan Settings.
Toggle the switch to enable the Benchmarking tab.
Benchmark Against a Broader Set of Companies
In addition to the selected peer group, users can benchmark against a broader set of publicly traded companies in the same industry at the country, regional, or global level.
To switch between these options, simply select the desired level and refresh the page.
The updated benchmarking estimates will then be applied to the business plan, offering a wider scope of industry comparison.
Assessing Peer Comparability
The Benchmarking tool helps evaluate the comparability of each peer by analysing financial metrics up to the median, which represents typical industry performance. By integrating these percentiles, users can position their company within the industry performance curve, identifying significant deviations that may require further analysis. These insights support strategic decision-making and financial planning.
Best Practices for Peer Selection
To ensure meaningful benchmarking results, it is generally advisable to include peers with similar operating metrics to the target company, such as:
Sales Growth Rates
EBITDA Margins
Companies with materially outlying metrics should be carefully reviewed and may need to be reconsidered.
For a more detailed discussion on best practices, refer to our white paper on the topic.