Associated Estates Realty - Comparative Multiple Analysis

Associated Estates Realty (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Associated Estates Realty

WikiWealth compares Associated Estates 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 Associated Estates Realty's comparative analysis.

Notes from the analysis:

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

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

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

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