AmTrust Financial - Comparative Multiple Analysis

AmTrust Financial (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of AmTrust Financial

WikiWealth compares AmTrust Financial'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 AmTrust Financial's comparative analysis.

Notes from the analysis:

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

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

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

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