British Sky Broadcasting - Comparative Multiple Analysis

British Sky Broadcasting (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of British Sky Broadcasting

WikiWealth compares British Sky Broadcasting'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 British Sky Broadcasting's comparative analysis.

Notes from the analysis:

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


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

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

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