Life Partners - Comparative Multiple Analysis

Life Partners (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Life Partners

WikiWealth compares Life Partners'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 Life Partners's comparative analysis.

Notes from the analysis:

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

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

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

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