Common Wealth REIT - Comparative Multiple Analysis

Common Wealth REIT (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Common Wealth REIT

WikiWealth compares Common Wealth REIT'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 Common Wealth REIT's comparative analysis.

Notes from the analysis:

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

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

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

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