Global Cash Access - Comparative Multiple Analysis

Global Cash Access (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Global Cash Access

WikiWealth compares Global Cash Access'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 Global Cash Access's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Global Cash Access by comparing Global Cash Access 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 Global Cash Access.

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

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