How do you adjust comps when the target grows markedly differently from the comp group?

Growth adjustments:

• PEG ratio: P/E divided by the growth rate — comparable companies should have similar PEGs.
• Growth−multiple regression: regress the multiple against the growth rate across the comp set, then project the target onto the regression line.
• Qualitative adjustment: if the target grows 3% and the median comp grows 8%, a multiple discount of −1.0x to −2.0x. Pitfall: the multiple's sensitivity to growth is non-linear — the value uplift from 5% to 10% is larger than from 10% to 15%.