Including Target In Peer Group

This problem practices a core judgment in relative valuation, how to construct a peer group and think about the risk of circularity when the target is part of the set used to estimate its own value. It also tests whether you understand the logic behind comparables analysis, including why practitioners often exclude the target and how someone could argue for including it. Interviewers ask this kind of question to see whether you can explain valuation methodology clearly, recognize its assumptions, and discuss both the practical convention and the theoretical debate.