Harris - Comparative Multiple Analysis

Harris (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Harris

WikiWealth compares Harris'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 Harris's comparative analysis.

Notes from the analysis:

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

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

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

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