Global Crossing - Comparative Multiple Analysis

Global Crossing (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Global Crossing

WikiWealth compares Global Crossing'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 Crossing's comparative analysis.

Notes from the analysis:

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

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

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

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