CGI Group - Comparative Multiple Analysis

CGI Group (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of CGI Group

WikiWealth compares CGI 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 CGI Group's comparative analysis.

Notes from the analysis:

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


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

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

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