American Campus - Comparative Multiple Analysis

American Campus (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of American Campus

WikiWealth compares American Campus'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 American Campus's comparative analysis.

Notes from the analysis:

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


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

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

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