Greenlight Capital - Comparative Multiple Analysis

Greenlight Capital (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Greenlight Capital

WikiWealth compares Greenlight Capital'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 Greenlight Capital's comparative analysis.

Notes from the analysis:

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

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

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

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