ICICI Bank - Comparative Multiple Analysis

ICICI Bank (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of ICICI Bank

WikiWealth compares ICICI Bank'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 ICICI Bank's comparative analysis.

Notes from the analysis:

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


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

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

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