Hawaiian Electric - Comparative Multiple Analysis

Hawaiian Electric (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Hawaiian Electric

WikiWealth compares Hawaiian Electric'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 Hawaiian Electric's comparative analysis.

Notes from the analysis:

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

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

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

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