Community Trust - Comparative Multiple Analysis

Community Trust (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Community Trust

WikiWealth compares Community Trust'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 Community Trust's comparative analysis.

Notes from the analysis:

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


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

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

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