Answers - Comparative Multiple Analysis

Answers (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Answers

WikiWealth compares Answers'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 Answers's comparative analysis.

Notes from the analysis:

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


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

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

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