Lamar Advertising - Comparative Multiple Analysis

Lamar Advertising (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Lamar Advertising

WikiWealth compares Lamar Advertising'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 Lamar Advertising's comparative analysis.

Notes from the analysis:

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


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

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

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