Jefferies Group - Comparative Multiple Analysis

Jefferies Group (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Jefferies Group

WikiWealth compares Jefferies Group'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 Jefferies Group's comparative analysis.

Notes from the analysis:

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

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

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

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