Healthspring - Comparative Multiple Analysis

Healthspring (Comparative Multiple Analysis)

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

Notes on the Comparative Multiple Analysis of Healthspring

WikiWealth compares Healthspring'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 Healthspring's comparative analysis.

Notes from the analysis:

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


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

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

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