Meredith - Comparative Multiple Analysis

Meredith (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Meredith

WikiWealth compares Meredith'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 Meredith's comparative analysis.

Notes from the analysis:

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


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

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

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