Hersha Hospitality - Comparative Multiple Analysis

Hersha Hospitality (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Hersha Hospitality

WikiWealth compares Hersha Hospitality'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 Hersha Hospitality's comparative analysis.

Notes from the analysis:

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


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

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

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