Forward Air - Comparative Multiple Analysis

Forward Air (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Forward Air

WikiWealth compares Forward Air'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 Forward Air's comparative analysis.

Notes from the analysis:

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


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

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

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