ESB Financial - Comparative Multiple Analysis

ESB Financial (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of ESB Financial

WikiWealth compares ESB Financial'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 ESB Financial's comparative analysis.

Notes from the analysis:

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

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

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

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