Hutchison Telecom - Comparative Multiple Analysis

Hutchison Telecom (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Hutchison Telecom

WikiWealth compares Hutchison Telecom'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 Hutchison Telecom's comparative analysis.

Notes from the analysis:

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

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

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

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