What Makes a Peer? Valuation-Anchored Similarity in Private Markets
As more investors contemplate private markets and contend with limited transparency, sparse disclosures, and infrequent transactions, identifying economically meaningful peer companies for comparison is a fundamental challenge for valuation, due diligence, portfolio construction, and risk management. We propose an ensemble tree-based supervised similarity learning framework that defines company similarity through the lens of market valuation rather than static feature matching or semantic descriptions. Specifically, we train a CatBoost gradient-boosted decision tree model on observed private company valuations and derive a valuation-aware similarity metric from importance-weighted leaf-no...
| Authors | Sebastian Frank, Jingrao Lyu, Max Jarmey et al. |
|---|---|
| Primary category | q-fin.ST |
| Published | 12 August 2026 |
| Last updated at source | 12 August 2026 |
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