Avatar - Comparative Multiple Analysis

Avatar (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Avatar

WikiWealth compares Avatar'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 Avatar's comparative analysis.

Notes from the analysis:

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

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

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

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