HSN - Comparative Multiple Analysis

HSN (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of HSN

WikiWealth compares HSN'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 HSN's comparative analysis.

Notes from the analysis:

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

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

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

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