Lions Gate Ent - Comparative Multiple Analysis

Lions Gate Ent (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Lions Gate Ent

WikiWealth compares Lions Gate Ent'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 Lions Gate Ent's comparative analysis.

Notes from the analysis:

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


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

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

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