1.2.6 PRIVATEMETRICS.PRIVATE_EQUITY_COMPARABLE_BOUNDARIES

PRIVATE_EQUITY_COMPARABLE_BOUNDARIES (METRIC, AGEINMONTHS, ENDDATE, WINDOWINYEARS,INDUSTRIALACTIVITIES, REVENUEMODELS, CUSTOMERMODELS, LIFECYCLEPHASES, VALUECHAIN, COUNTRIES, UNIVERSE, FACTORWEIGHT )

Parameters

METRIC: Text

The Metric for which the comparable has to be evaluated. (“PriceToSales”, “PriceToEarnings”, “PriceToEBITDA”, “PriceToBook”, “EVToSales”, “EVToEBITDA”, “TotalReturns”)

AGEINMONTHS: Number

The age of the company in months. 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..)

VALUECHAIN: 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()

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 are 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

FACTORNAME: Text

To determine for which Factor to calculate the quintile boundaries. Possible values are ('Size', ‘Growth', 'Profits', 'Leverage', and 'TermSpread’)

Returns

Reference Table

Examples

If a user wants to evaluate the comparable boundaries for the PriceToSales metric of private equity-backed companies, specifically focusing on companies' size, the custom function will help analyze companies within the PEU (Private Equity Universe) that operate in a specific industrial activity ("AC01"). The function allows the user to filter companies based on factors such as industry, revenue model, lifecycle phase, and geographic location while defining a specific window of time for comparison.

CODE

=PRIVATEMETRICS.PRIVATE_EQUITY_COMPARABLE_BOUNDARIES("PriceToSales", , DATE(2024,9,23), "2", "ac01", , , , , , "PEU", "Size")

In this sample use case:

Metric: "PriceToSales" is used to evaluate how companies are valued based on their sales.
AgeInMonths: Left blank, meaning the comparable set of companies is not filtered based on age.
EndDate: Set to DATE(2024,9,23), meaning the dataset will include companies up to September 23, 2024.
WindowInYears: Set to "2", indicating the comparable companies will have data from the past two years.
IndustrialActivities: "AC01" is used to focus on companies operating within a specific industrial activity code.
RevenueModels, CustomerModels, LifecyclePhases, ValueChain: These are left blank, so no filtering is applied based on these factors.
Countries: Left blank, meaning no geographic filtering is applied.
Universe: "PEU" specifies that the comparison is limited to private equity-backed companies.
FactorName: "Size" is used to determine boundaries based on the size of the companies.

This function allows the user to analyze how private equity-backed companies in a particular industrial sector ("AC01") compare in terms of their price-to-sales ratios over a two-year period, with a focus on size as the key factor driving the analysis.

The custom function will return a table like this on the sheet.