CapitalSource - Comparative Multiple Analysis

CapitalSource (Comparative Multiple Analysis)

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

Notes on the Comparative Multiple Analysis of CapitalSource

WikiWealth compares CapitalSource'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 CapitalSource's comparative analysis.

Notes from the analysis:

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


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

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

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