Connecticut Water Service - Comparative Multiple Analysis

Connecticut Water Service (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Connecticut Water Service

WikiWealth compares Connecticut Water Service'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 Connecticut Water Service's comparative analysis.

Notes from the analysis:

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


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

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

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