51job - Comparative Multiple Analysis

51job (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of 51job

WikiWealth compares 51job'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 51job's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for 51job.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to 51job'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 51job's Analysis


How does this work? The Comparative Investment Analysis determines the value of 51job by comparing 51job 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 51job.

See the 51job cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in 51job.

Also, see the 51job's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and 51job's valuation conclusion for a quick summary.