Range determination is the process of establishing a set of values within which a company's valuation multiples fall, based on comparable company analysis. This approach allows analysts to assess how a particular company stacks up against its peers by evaluating metrics like price-to-earnings or enterprise value-to-EBITDA ratios, helping to create a more accurate picture of its market value. By understanding these ranges, stakeholders can make informed decisions about investments, mergers, and acquisitions.
congrats on reading the definition of Range Determination. now let's actually learn it.