What does the final step of the comparable company analysis involve determining?

The final step of the comparable company analysis is centered on determining the valuation of the company. This process involves synthesizing data collected from the peer companies and applying various valuation multiples, such as Price-to-Earnings (P/E), Enterprise Value-to-EBITDA (EV/EBITDA), or Price-to-Sales (P/S), to arrive at an estimated value for the company being analyzed.

This step is crucial because it translates the comparative data into a tangible value that can be compared against the company's current market price or used in further financial modeling. Valuation helps investors and analysts assess whether a company is potentially undervalued or overvalued compared to its peers, providing insights into investment decisions or merger and acquisition opportunities.

In contrast, the other options involve aspects that do not represent the direct culmination of the comparable company analysis. Peer comparison is part of the initial stages, where analysts select companies with similar profiles. Market trend assessment could inform the overall business context, but it is not the final analytical step. Similarly, the breakdown of revenue streams is more about understanding a company's operations and does not lead directly to a final valuation result. Thus, focusing on valuation is what drives the conclusions derived from this method.