FTI Consulting - Comparative Multiple Analysis

FTI Consulting (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of FTI Consulting

WikiWealth compares FTI Consulting'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 FTI Consulting's comparative analysis.

Notes from the analysis:

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

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

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

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