Huron Consulting - Comparative Multiple Analysis

Huron Consulting (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Huron Consulting

WikiWealth compares Huron Consulting'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 Huron Consulting's comparative analysis.

Notes from the analysis:

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

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

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

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