First Potomac Realty - Comparative Multiple Analysis

First Potomac Realty (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of First Potomac Realty

WikiWealth compares First Potomac Realty'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 Potomac Realty's comparative analysis.

Notes from the analysis:

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


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

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

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