First Mercury Financial - Comparative Multiple Analysis

First Mercury Financial (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of First Mercury Financial

WikiWealth compares First Mercury Financial'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 Mercury Financial's comparative analysis.

Notes from the analysis:

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


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

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

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