Lazard LTD - Comparative Multiple Analysis

Lazard LTD (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Lazard LTD

WikiWealth compares Lazard LTD'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 Lazard LTD's comparative analysis.

Notes from the analysis:

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

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

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

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