Chimera Investment - Comparative Multiple Analysis

Chimera Investment (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Chimera Investment

WikiWealth compares Chimera Investment'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 Chimera Investment's comparative analysis.

Notes from the analysis:

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


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

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

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