Trading comparables value a company by how the market prices similar listed companies. For each peer:
- Market cap = share price x diluted shares.
- Enterprise value = market cap + net debt. A peer with more cash than debt has negative net debt, so its EV is below its market cap.
- EV / EBITDA compares the value of the whole business with a profit before interest; P / E compares the equity with the profit left for shareholders.
Match numerator and denominator: EV goes with EBITDA (before interest, for everyone), market cap with net income (after interest, for shareholders).
A multiple on a loss means nothing, so show "n/m" (not meaningful) when EBITDA or earnings are zero or negative. Use the median as the main benchmark: one peer on a depressed profit can drag the mean a long way.
Then apply the median to your company: EBITDA x median EV / EBITDA gives an implied EV; subtract net debt and divide by diluted shares for a value per share.