Apartment Investment - Comparative Multiple Analysis

Apartment Investment (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Apartment Investment

WikiWealth compares Apartment Investment'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 Apartment Investment's comparative analysis.

Notes from the analysis:

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


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

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

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