Why is a comps analysis still relevant despite the perceived efficiency of markets?

A comps analysis remains relevant even in efficient markets because market efficiency implies that all available information is already incorporated into stock prices, but it does not ensure that every equity is priced correctly at all times. Mispricings can occur due to various factors like investor psychology, information asymmetry, or market anomalies that may create temporary discrepancies. Therefore, a comps analysis, which compares a company's valuation metrics to those of its peers, can provide valuable insight into whether a stock may be undervalued or overvalued relative to its competitors, helping investors make more informed decisions.

Additionally, while other aspects like ease of implementation or historical performance might be considerations, they do not address the fundamental value-seeking nature of comps analysis in evaluating market pricing efficiency. The focus on accurate pricing based on peer comparison helps investors identify potential investment opportunities despite overall market efficiency.