Protective Life - Comparative Multiple Analysis

Protective Life (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Protective Life

WikiWealth compares Protective Life'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 Protective Life's comparative analysis.

Notes from the analysis:

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


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

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

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