Federal National Mortgage - Comparative Multiple Analysis

Federal National Mortgage (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Federal National Mortgage

WikiWealth compares Federal National Mortgage'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 National Mortgage's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Federal National Mortgage by comparing Federal National Mortgage 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 National Mortgage.

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

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