Mercury General - Comparative Multiple Analysis

Mercury General (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Mercury General

WikiWealth compares Mercury General'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 Mercury General's comparative analysis.

Notes from the analysis:

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

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

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

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