Elbit Systems - Comparative Multiple Analysis

Elbit Systems (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Elbit Systems

WikiWealth compares Elbit Systems'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 Elbit Systems's comparative analysis.

Notes from the analysis:

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


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

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

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