Advisory Board - Comparative Multiple Analysis

Advisory Board (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Advisory Board

WikiWealth compares Advisory Board's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Advisory Board's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Advisory Board.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Advisory Board's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Advisory Board's Analysis


How does this work? The Comparative Investment Analysis determines the value of Advisory Board by comparing Advisory Board financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Advisory Board.

See the Advisory Board cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Advisory Board.

Also, see the Advisory Board's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Advisory Board's valuation conclusion for a quick summary.