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Dimension two: Peers

5 min read

A company only looks cheap or expensive next to the companies it competes with.

Relative, not absolute

The Peers score is a percentile: where the company's blended quality and valuation sits within its own sector. A score of 80 means it reads better than roughly four-fifths of its sector on the same measures.

Why sector matters

Sector norms differ enormously. Software carries higher multiples and higher margins than utilities, and comparing the two on raw price-to-earnings tells you almost nothing.

The peer table lists the largest companies in the same sector with their multiples and scores side by side, so the comparison is visible rather than assumed.

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