WSP Holdings - Comparative Multiple Analysis

WSP Holdings (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of WSP Holdings

WikiWealth compares WSP Holdings'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 WSP Holdings's comparative analysis.

Notes from the analysis:

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


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

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

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