Axis Capital - Comparative Multiple Analysis

Axis Capital (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Axis Capital

WikiWealth compares Axis Capital'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 Axis Capital's comparative analysis.

Notes from the analysis:

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


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

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

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