Comfort Systems - Comparative Multiple Analysis

Comfort Systems (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Comfort Systems

WikiWealth compares Comfort 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 Comfort Systems's comparative analysis.

Notes from the analysis:

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


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

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

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