Federated Investors - Comparative Multiple Analysis

Federated Investors (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Federated Investors

WikiWealth compares Federated Investors'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 Federated Investors's comparative analysis.

Notes from the analysis:

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

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

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

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