Giant Interactive - Comparative Multiple Analysis

Giant Interactive (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Giant Interactive

WikiWealth compares Giant Interactive'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 Giant Interactive's comparative analysis.

Notes from the analysis:

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

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

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

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