Module VI· Trading Comps Model BuildAdvanced
Question

How do you treat multi-currency comps, such as USD peers versus EUR target?

Answer

Convert market capitalization, debt, cash, and enterprise value into a common currency using current spot rates. Financial statement items should use appropriate average or reported rates, but multiples are generally currency-neutral if numerator and denominator match. For target valuation, convert implied EV or equity value into the desired currency consistently.