Frontier Communications - Comparative Multiple Analysis

Frontier Communications (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Frontier Communications

WikiWealth compares Frontier Communications'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 Frontier Communications's comparative analysis.

Notes from the analysis:

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


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

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

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