Intercontinental Hotels - Comparative Multiple Analysis

Intercontinental Hotels (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Intercontinental Hotels

WikiWealth compares Intercontinental Hotels'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 Intercontinental Hotels's comparative analysis.

Notes from the analysis:

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

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

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

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