Geo Group - Comparative Multiple Analysis

Geo Group (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Geo Group

WikiWealth compares Geo Group'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 Geo Group's comparative analysis.

Notes from the analysis:

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

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

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

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