Hewitt Associates - Comparative Multiple Analysis

Hewitt Associates (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Hewitt Associates

WikiWealth compares Hewitt Associates'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 Hewitt Associates's comparative analysis.

Notes from the analysis:

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


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

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

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