Healthcare Realty - Comparative Multiple Analysis

Healthcare Realty (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Healthcare Realty

WikiWealth compares Healthcare Realty'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 Healthcare Realty's comparative analysis.

Notes from the analysis:

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


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

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

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