Which of the following is a major benefit of using comparable company analysis (Comps)?

Using comparable company analysis (Comps) is majorly beneficial because it is relatively straightforward to compute once the relevant peer group is established. This ease of calculation arises from the fact that Comps relies on readily available market data, such as stock prices and financial metrics (like revenue, EBITDA, or net income) from similar companies. Analysts can swiftly assess a multitude of firms and derive valuation multiples, which ultimately helps in valuing the target company.

The process essentially involves drawing on the market activities of these comparable firms to infer a valuation for the company in question. This aspect distinguishes Comps from other valuation methods, which may require more intricate calculations or intrinsic assessments based on projected future cash flows.

In contrast, the other options highlight points that do not align with the primary benefits of Comps. The complexity of the analysis does not serve as a benefit (as mentioned in the first option), and while Comps can provide insights into relative valuation, they do not serve as a direct measure of intrinsic value or guarantee accurate future performance predictions.