Employers Holdings - Comparative Multiple Analysis

Employers Holdings (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Employers Holdings

WikiWealth compares Employers Holdings'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 Employers Holdings's comparative analysis.

Notes from the analysis:

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

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

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

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