New Oriental Education - Comparative Multiple Analysis

New Oriental Education (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of New Oriental Education

WikiWealth compares New Oriental Education'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 New Oriental Education's comparative analysis.

Notes from the analysis:

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

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

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

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