Education Realty - Comparative Multiple Analysis

Education Realty (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Education Realty

WikiWealth compares Education Realty'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 Education Realty's comparative analysis.

Notes from the analysis:

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


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

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

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