Definition of Peer group:
In investment research, peer group analysis is a vital part of establishing a valuation for a particular stock. The emphasis here is on comparing "apples to apples," which means that the constituents of the peer group should be more or less similar to the company being researched, particularly in terms of their main areas of business and market capitalization.
A peer group is a group of individuals or entities that share similar characteristics and interests among one another. Peer groups, in the case of people, have characteristics that include similarities like socio-economic status, level of education, ethnic background, and so on among its individual members. In the context of firms, a peer group refers to companies that are competitors in the same industry sector and are of similar size.
Community in which most or all members have roughly the same characteristics such as age, class, education, merit, rank, standing, or status.
How to use Peer group in a sentence?
- I really wanted to fit into my peer group and that is why I started to dress different and act different.
- Individual peer groups include people that share similar characteristics like income, geographic location, age, or race.
- Firm peer groups include companies in the same industry sector or competitors and can be used for peer analysis.
- I cannot relate to most in my peer group ; while other teenagers love to be social and spend time outside, I crave solitude and practically live in my room.
- The peer group was used as a control in the study as their like minded behaviors and decision making methods were useful to analyze.
- A peer group refers to like individuals or organizations that share several similarities, making them easily comparable as a group.
Meaning of Peer group & Peer group Definition