Clear Channel - Comparative Multiple Analysis

Clear Channel (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of Clear Channel

WikiWealth compares Clear Channel'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 Clear Channel's comparative analysis.

Notes from the analysis:

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


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

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

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