Central Vermont Pub Svc - Comparative Multiple Analysis

Central Vermont Pub Svc (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Central Vermont Pub Svc

WikiWealth compares Central Vermont Pub Svc'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 Central Vermont Pub Svc's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Central Vermont Pub Svc by comparing Central Vermont Pub Svc 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 Central Vermont Pub Svc.

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

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