The comparable companies (Comp A, B, C, and D) have the same free cash flow (FCF) market multiple even though they likely have different cost structures and investment requirements for a few reasons: Market Efficiency: The market might not perfectly differentiate between companies based on slight variations in cost structure or investment needs. Investors might focus on headline numbers like free cash flow and growth prospects when assigning a valuation multiple. Dominant Factors: Even if cost structures differ, other factors like growth rate, industry risks, and overall profitability might have a stronger influence on the market's perception of value. These factors could be more similar across the companies, leading to a similar FCF multiple. Limited Information: The data provided might not be sufficient to fully understand the cost structure differences. A more detailed analysis of each company's financial statements might reveal variations that aren't reflected in the limited information presented. Trading Similarities: The companies might trade in a similar fashion, even with cost structure differences. This could be due to being in the same industry or having similar risk profiles