German American - Comparative Multiple Analysis

German American (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of German American

WikiWealth compares German American'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 German American's comparative analysis.

Notes from the analysis:

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


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

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

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