Affiliated Managers - Comparative Multiple Analysis

Affiliated Managers (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Affiliated Managers

WikiWealth compares Affiliated Managers'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 Affiliated Managers's comparative analysis.

Notes from the analysis:

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


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

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

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