Harleysville Group - Comparative Multiple Analysis

Harleysville Group (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Harleysville Group

WikiWealth compares Harleysville Group'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 Harleysville Group's comparative analysis.

Notes from the analysis:

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

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

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

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