Elan Corp - Comparative Multiple Analysis

Elan Corp (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of Elan Corp

WikiWealth compares Elan Corp'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 Elan Corp's comparative analysis.

Notes from the analysis:

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


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

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

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