Allied Waste Industries - Comparative Multiple Analysis

Allied Waste Industries (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Allied Waste Industries

WikiWealth compares Allied Waste Industries'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 Allied Waste Industries's comparative analysis.

Notes from the analysis:

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


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

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

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