First Advantage - Comparative Multiple Analysis

First Advantage (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of First Advantage

WikiWealth compares First Advantage'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 First Advantage's comparative analysis.

Notes from the analysis:

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


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

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

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