Hertz Global - Comparative Multiple Analysis

Hertz Global (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Hertz Global

WikiWealth compares Hertz Global'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 Hertz Global's comparative analysis.

Notes from the analysis:

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

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

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

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