1.2.5 PRIVATEMETRICS.PRIVATE_EQUITY_COMPARABLE

PRIVATE_EQUITY_COMPARABLE (METRIC, CURRENCY, AGEINMONTHS, ENDDATE, WINDOWINYEARS, INDUSTRIALACTIVITIES, REVENUEMODELS, CUSTOMERMODELS, LIFECYCLEPHASES, VALUECHAINTYPES, COUNTRIES, SIZE, GROWTH, LEVERAGE, PROFITS, COUNTRYRISK, UNIVERSE, FACTORWEIGHT, [TYPE], [INTERSECT_PECCS])

Perform a comparable computation for private equity. This involves finding datapoints which have similar PECCS classifications and factor values (the comparables dataset) and averaging the metric values

Parameters

METRIC: Text

The Metric for which the comparable has to be evaluated (priceToSales, priceToEbitda, priceToBook, priceToEarnings, evToSales, evToEbitda, totalReturns, ebitdaToSales, ebitToSales, netIncomeToSales, netDebtToAssets, revenueGrowth, dividendOverRevenue, returnOnAssets, returnOnEquity, returnOnCapitalEmployed, netOperatingIncome, netDebtToEquity, size, leverage)

CURRENCY: Text

The currency of monetary factor inputs such as SIZE ('USD', ‘EUR’, ‘GBP’)

AGEINMONTHS: Number

The age of the company in month. The comparable computation will keep companies within 6 months of this value. If set, ENDDATE and WINDOWINYEARS will be ignored

ENDDATE: Date

The max date of the comparable dataset

WINDOWINYEARS: Number

The window in years of the comparable dataset. In other words, the min date of the comparable dataset = ENDDATE - WINDOWINYEARS

INDUSTRIALACTIVITIES: Range(Text), Text

Comma-separated or cell range selection of industrial activity PECCS code. See here for definitions. (“AC01”, “AC02”, etc..)

REVENUEMODELS: Range(Text), Text

Comma-separated or cell range selection of revenue model PECCS code. See here for definitions. (“RM01”, “RM02”, etc..)

CUSTOMERMODELS: Range(Text), Text

Comma-separated or cell range selection of revenue model PECCS code. See here for definitions. (“CM01”, “CM02”, etc..)

LIFECYCLEPHASES: Range(Text), Text

Comma-separated or cell range selection of revenue model PECCS code. See here for definitions. (“LP01”, “LP02”, etc..)

VALUECHAINTYPES: Range(Text), Text

Comma-separated or cell range selection of revenue model PECCS code. See here for definitions. (“VC01”, “VC02”, etc..)

COUNTRIES: Range(Text), Text

Range of countries as three-letter ISO code. The possible values can be obtained by calling PRIVATEMETRICS.COUNTRIES()

SIZE: Number/ Text

Revenue. Absolute value (in CURRENCY) or quintile (“Q1”, “Q2”, “Q3”, “Q4”, “Q5”)

GROWTH: Number (Percentage)/ Text

Revenue growth month-on-month. Absolute value or quintile (“Q1”, “Q2”, “Q3”, “Q4”, “Q5”)

LEVERAGE: Number (Percentage)/ Text

Total Debt / Revenue. Absolute value or quintile (“Q1”, “Q2”, “Q3”, “Q4”, “Q5”)

PROFITS: Number (Percentage)/ Text

EBITDA margin. Absolute value or quintile (“Q1”, “Q2”, “Q3”, “Q4”, “Q5”)

COUNTRYRISK: Range(Text), Text

Term spread. Specify 3-letter country ISOs or quintile (“Q1”, “Q2”, “Q3”, “Q4”, “Q5”)

UNIVERSE: Text

“PEU”, “MIU” for broadmarket, PE-backed and Market universe respectively. See here for more details

FACTORWEIGHT: Number (Decimal)

Number between 0 and 1. At the two extremes, 1 indicates that the comparables is purely based on factors whilst 0 indicates that the comparables is purely based on PECCS. Anything in between is a weighted-average between the two

TYPE: Text (Optional)

To determine how to aggregate the comparables dataset. Default is “mean”. (“mean”, “median”, “datumCount”, “companyCount”, “p25”, “p75”, “min”, “max”, “vol”, “var97_5”, “var99”)
vol, var97_5 and var99 are only applicable for “totalReturns” metric

INTERSECT_PECCS: Boolean (Optional)

Intersect or union the PECCS filters when doing the calculation. Default is TRUE.

Returns

number

Examples

CODE

=PRIVATEMETRICS.PRIVATE_EQUITY_COMPARABLE("PriceToSales", "USD", , DATE(2023,12,31), 2, , , , , , , , , "Q1", , , "MIU", "1", "mean")

In this sample use case:

Metric: "PriceToSales" is used to evaluate how companies are valued based on their sales performance.
Currency: "USD" specifies that the comparable value is to be calculated in US Dollars.
AgeInMonths: Left blank, meaning the comparable set of companies is not filtered based on the age of the company. Instead, the endDate and windowInYears parameters are used to determine the evaluation period.
EndDate: Set to DATE(2023,12,31), which means the dataset will include companies with data available up until December 31, 2023.
WindowInYears: Set to "2", indicating that the comparable companies will have data from the past two years before the specified endDate, i.e., from 2022 to 2023.
IndustrialActivities: Left blank, which implies there is no specific filtering based on industrial activities or subclasses. All companies are considered regardless of their industrial classification.
RevenueModels: Left blank, so no filtering is applied based on the companies' revenue models, allowing the inclusion of any revenue-generating principle.
CustomerModels: Left blank, indicating that the distribution and sales models to end-users or businesses are not specified. The function will include companies regardless of how they distribute their goods or services.
LifeCyclePhases: Left blank, meaning the function does not restrict companies based on their lifecycle phase (e.g., growth, maturity, or decline). All companies, regardless of their phase, are included.
ValueChainTypes: Left blank, which means no specific value chain process or stage is used for filtering. All stages of production, distribution, and after-sales services are included in the analysis.
Countries: Left blank, so the comparable value is not limited to any specific geographic region or country. It includes companies globally without geographic restrictions.
Size: Left blank, indicating that there is no filter based on the absolute value of revenue or quintile size. All company sizes are considered.
Growth: Left blank, meaning there is no filtering based on revenue growth month-on-month.
Leverage: Set to "Q1", meaning only companies that fall into the lowest quintile of leverage are included.
Profits: Left blank. The comparable set includes companies across all levels of profitability.
CountryRisk: Left blank, indicating that no country risk or term spread filters are applied.
Universe: "MIU" specifies that the analysis is limited to companies within the Market Universe (MIU), which includes a broad selection of market-related companies.
FactorWeight: "1" means that the comparable is calculated purely based on the specified factors (e.g., financial ratios and universe selection), with no weighting given to PECCS (Private Equity Comparable Classifications System). A weight of "1" represents a full reliance on these factors.
Operation: "mean" specifies that the function should aggregate the comparable dataset using the mean value, providing an average comparable figure across the selected companies.