Peer Set
Definition
The group of comparable companies selected for use in a comparable company analysis or a comparable transaction analysis. The peer set must be constructed using documented selection criteria applied before the multiples of candidate companies are examined. Selection criteria typically include business model type, revenue stage, growth rate range, gross margin range, and geographic market. A peer set assembled after reviewing multiples is subject to selection bias.
Common Misapplication
The most common misapplication is constructing the peer set after reviewing the multiples of all potential comparables and selecting the companies whose multiples produce the most favourable implied valuation for the subject company. This produces a peer set that is not representative of the relevant market.
FFI Standard Reference
This term is defined and applied in Book 4, Section 4.3: Comparable Company Analysis.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Peer Set. https://ffistandard.org/glossary/peer-set/. 2026.