Cablevision - Comparative Multiple Analysis

Cablevision (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Cablevision

WikiWealth compares Cablevision'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 Cablevision's comparative analysis.

Notes from the analysis:

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


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

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

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