Equity Residential - Comparative Multiple Analysis

Equity Residential (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Equity Residential

WikiWealth compares Equity Residential'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 Equity Residential's comparative analysis.

Notes from the analysis:

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


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

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

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