Homex Development - Comparative Multiple Analysis

Homex Development (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of Homex Development

WikiWealth compares Homex Development'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 Homex Development's comparative analysis.

Notes from the analysis:

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


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

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

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