Diamond Mgmt - Comparative Multiple Analysis

Diamond Mgmt (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Diamond Mgmt

WikiWealth compares Diamond Mgmt'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 Diamond Mgmt's comparative analysis.

Notes from the analysis:

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


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

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

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