Federal Home Loan Mtg - Comparative Multiple Analysis

Federal Home Loan Mtg (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Federal Home Loan Mtg

WikiWealth compares Federal Home Loan Mtg'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 Federal Home Loan Mtg's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Federal Home Loan Mtg by comparing Federal Home Loan Mtg 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 Federal Home Loan Mtg.

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

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