Vail Resorts - Comparative Multiple Analysis

Vail Resorts (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Vail Resorts

WikiWealth compares Vail Resorts'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 Vail Resorts's comparative analysis.

Notes from the analysis:

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

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

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

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