Waddell & Reed Financial - Comparative Multiple Analysis

Waddell & Reed Financial (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Waddell & Reed Financial

WikiWealth compares Waddell & Reed Financial'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 Waddell & Reed Financial's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Waddell & Reed Financial by comparing Waddell & Reed Financial 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 Waddell & Reed Financial.

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

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