Iowa Telecom - Comparative Multiple Analysis

Iowa Telecom (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Iowa Telecom

WikiWealth compares Iowa Telecom'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 Iowa Telecom's comparative analysis.

Notes from the analysis:

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


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

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

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