LG Display - Comparative Multiple Analysis

LG Display (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of LG Display

WikiWealth compares LG Display'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 LG Display's comparative analysis.

Notes from the analysis:

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


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

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

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