Korea Electric Power - Comparative Multiple Analysis

Korea Electric Power (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Korea Electric Power

WikiWealth compares Korea Electric Power'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 Korea Electric Power's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Korea Electric Power by comparing Korea Electric Power 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 Korea Electric Power.

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

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