GeoEye - Comparative Multiple Analysis

GeoEye (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of GeoEye

WikiWealth compares GeoEye'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 GeoEye's comparative analysis.

Notes from the analysis:

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

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

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

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