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Series 79: Collection, Analysis & Evaluation of Data
Series 79 practice questioneasyComparable Company Analysis

Which of the following characteristics is most important when selecting peers for a comparable company analysis?

  1. AGeographic presence
  2. BStock exchange listing
  3. CDividend history
  4. DBusiness model and industry focus✓ Correct answer
Explanation

Why DBusiness model and industry focus

Companies in the same industry with a similar business model provide the most meaningful comparisons. Overlooking this could result in distorted multiples due to differing growth, risk, or profitability profiles.

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