Huaneng Power Intl - Comparative Multiple Analysis

Huaneng Power Intl (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Huaneng Power Intl

WikiWealth compares Huaneng Power Intl'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 Huaneng Power Intl's comparative analysis.

Notes from the analysis:

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

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

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

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