Working thru a case study for a final round Associate Valuation role - instructions were very vague but it’s basically broken out into 3 parts. First, explain the differences between company X and Y. Second, review their historical financials (last 5 years). Third, compare their historical financials. Looking for advice/recs on how to approach steps 2 and 3. Are there certain metrics better or worse for points 2 & 3? Should I combine both parts? If you’d like the PM that’s fine, thanks all!

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Are these hypothetical companies?

Regarding financials, look at key metrics for comparisons: historical growth rates for both revenue and EBITDA, gross profit and EBITDA margins, current ratio, leverage, working capital. If projections were provided, do the same for growth rates and margins.

When I compare similar companies, I use the above to assess whether they warrant a premium or discount to the market.

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I think point #2 is specifically speaking to the trends observed for each separate company and then for #3 you do a relative analysis

Reviewing historicals, basically what they’ve said above. I’d want to know the maturity of each business (if one is relatively new and the other being around much longer). Analyzing their cash flow to identify how they’ve been spending their money and whether their leverage has been growing. Also analyzing productivity and whether their margins have shown steady improvements. Benchmark these companies’ key metrics against each other to assess whose performing better. Consider their differing capital structures, growth rates, customer mix, market share, cash conversion cycles, product mix and contribution margins, etc... can literally go on all day here.

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thanks - the issue is that the write up can’t exceed one page. so i was mostly. looking for the most important pieces

For key metrics, it would be helpful to know what industry the companies operate

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sorry for the super long question - this is a great opportunity so just want to be sure I nail it.

Big 4?

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