Rockwell Collins - Comparative Multiple Analysis

Rockwell Collins (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Rockwell Collins

WikiWealth compares Rockwell Collins'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 Rockwell Collins's comparative analysis.

Notes from the analysis:

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


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

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

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