Aetna - Comparative Multiple Analysis

Aetna (Comparative Multiple Analysis)

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Improve your investment analysis with by seeing the Aetna's Discounted Cash Flow analysis, Aetna's Warren Buffet analysis, and Aetna's Weighted Average Cost of Capital (WACC) Analysis.

Notes on the Comparative Multiple Analysis of Aetna

WikiWealth compares Aetna'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 Aetna's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Aetna.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Aetna'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 Aetna's Analysis


How does this work? The Comparative Investment Analysis determines the value of Aetna by comparing Aetna 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 Aetna.

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

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