2.2.5 Private Equity Comparables

Purpose

Perform a comparable computation for private equities. This involves finding data points which have similar PECCS classifications and factor values, and averaging the metric values.

Endpoint

POST

/compute-service/v2/pe-comparables/average/by/profiles

Parameters:

• metric (string, required):
  The metric for which the comparable has to be evaluated.
  Supported metrics include: "DividendOverRevenue", "EbitdaToSales", "EbitToSales", "EvToEbitda", "EvToSales", "Leverage", "NetDebtToAssets", "NetDebtToEquity", "NetIncomeToSales", "NetOperatingIncome", "PriceToBook", "PriceToEarnings", "PriceToEbitda", "PriceToSales", "ReturnOnAssets", "ReturnOnCapitalEmployed", "ReturnOnEquity", "RevenueGrowth", "Size", "TotalReturns".

• reportingCurrency (string, optional):
  The currency of monetary metric, such as NetOperatingIncome, Size and TotalReturns.
  Supported currencies are: "EUR", "GBP", "LCU", "USD". Default value is "USD" if omitted.

• age (int, optional):
  The age of the company in months, and the value should be between 24 and 240. Note that the computation extends 6-month before and after the specified age. For instance, 24 would indicate inclusion of companies of age between 18-month and 30-month.
  If this parameter is set, startDate and endDate will be ignored.

• startDate (string, optional):
  The starting date for the comparable dataset. If supplied, the value has to be formatted as YYYY-MM-DD.

• endDate (string, optional):
  The maximum date of the comparable dataset. If supplied, the value has to be formatted as YYYY-MM-DD.

• peccsCountryProfile (object, optional):
  Filters to be applied to comparables dataset by PECCS and country profiles:

  • industrialActivities (list of strings, optional):
    List of industrial activity PECCS codes. See 4.2 Activity Classification for the complete definitions.
    Acceptable values include "AC01", "AC02".

  • revenueModels (list of strings, optional):
    List of revenue model PECCS codes. See 4.4 Revenue Model for the complete definitions.
    Acceptable values include "RM01", "RM02".

  • customerModels (list of strings, optional):
    List of customer model PECCS codes. See 4.5 Customer Model for the complete definitions.
    Acceptable values include "CM01", "CM02".

  • lifecyclePhases (list of strings, optional):
    List of lifecycle phase PECCS codes. See 4.3 Lifecycle Phases for the complete definitions.
    Acceptable values include "LP01", "LP02".

  • valueChainTypes (list of strings, optional):
    List of value chain type PECCS codes. See 4.6 Value Chain Types for the complete definitions.
    Acceptable values include "VC01", "VC02".

  • countries (list of strings, optional):
    List of country ISO codes. Values can be obtained by referring to Privatemetrics® Country Codes.

• factorsProfiles (list of FactorProfile objects, optional):
  Financial factors to be applied to the comparables dataset. Please refer to the FactorProfile object below for more information.

• universe (string, optional):
  Universe of companies in the dataset.
  Supported universes are "PEU" for private equity universe and "MIU" for market index universe. Default value is "PEU" if omitted.

• factorWeight (float, optional):
  A numeric value between 0 and 1. At the extremes, 1 indicates that comparables are purely based on factors, while 0 indicates that comparables are purely based on PECCS. Values between 0 and 1 create a weighted average between the two.

• intersectPeccs (boolean, optional):
  Intersect or union the PECCS filters when doing the calculation. Default value is true if omitted.

• operation (string, optional):
  Determines how to aggregate the comparables dataset. Default is "Mean" if omitted.
  Supported operations are: "CompanyCount", "DatumCount", "Max", "Mean", "Median", "Min", "P25", "P75", "VaR975", "VaR99", "Vol"
  Note: Option "Vol", "VaR975", and "VaR99" are only applicable for the "TotalReturns" metric.

FactorProfile (object)

• factorName (string, required):
  Name of the factor.
  Supported factors are "Growth", "Leverage", "Profits", "Size", "TermSpread".

Depending on the factor, there are additional parameters required to be supplied:

Example

• Request

  JSON

  {
      "metric": "PriceToSales",
      "startDate": "2022-07-31",
      "endDate": "2024-07-31",
      "peccsCountryProfile": {
          "industrialActivities": [
              "AC01"
          ],
          "revenueModels": [
              "RM02"
          ],
          "customerModels": [
              "CM01"
          ],
          "lifecyclePhases": [
              "LP02"
          ],
          "valueChainTypes": [
              "VC03"
          ],
          "countries": [
              "ITA",
              "PRT",
              "ESP",
              "POL",
              "SVK",
              "DNK",
              "FIN",
              "IRL",
              "NOR",
              "SWE",
              "GBR",
              "AUT",
              "FRA",
              "DEU",
              "NLD"
          ]
      },
      "factorsProfiles": [
          {
              "factorName": "Size",
              "quintile": 1
          },
          {
              "factorName": "Growth",
              "quintile": 1
          },
          {
              "factorName": "Profits",
              "quintile": 1
          },
          {
              "factorName": "Leverage",
              "quintile": 1
          },
          {
              "factorName": "TermSpread",
              "countries": [
                  "ITA",
                  "PRT",
                  "ESP",
                  "POL",
                  "SVK",
                  "DNK",
                  "FIN",
                  "IRL",
                  "NOR",
                  "SWE",
                  "GBR",
                  "AUT",
                  "FRA",
                  "DEU",
                  "NLD"
              ]
          }
      ],
      "universe": "PEU",
      "factorWeight": 1,
      "operation": "Mean"
  }

• Response

  JSON

  {
      "data": {
          "results": 2.0672512633844677
      }
  }