Boeing - Comparative Multiple Analysis

Boeing (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Boeing

WikiWealth compares Boeing'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 Boeing's comparative analysis.

Notes from the analysis:

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

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

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

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