Barclays - Comparative Multiple Analysis

Barclays (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Barclays

WikiWealth compares Barclays'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 Barclays's comparative analysis.

Notes from the analysis:

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


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

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

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