Grand Canyon Education - Comparative Multiple Analysis

Grand Canyon Education (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Grand Canyon Education

WikiWealth compares Grand Canyon Education'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 Grand Canyon Education's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Grand Canyon Education by comparing Grand Canyon Education 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 Grand Canyon Education.

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

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