Web.com Group - Comparative Multiple Analysis

Web.com Group (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Web.com Group

WikiWealth compares Web.com Group'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 Web.com Group's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Web.com Group by comparing Web.com Group 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 Web.com Group.

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

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