Health Care REIT - Comparative Multiple Analysis

Health Care REIT (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Health Care REIT

WikiWealth compares Health Care REIT'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 Health Care REIT's comparative analysis.

Notes from the analysis:

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

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

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

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