Merrill Lynch - Comparative Multiple Analysis

Merrill Lynch (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Merrill Lynch

WikiWealth compares Merrill Lynch'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 Merrill Lynch's comparative analysis.

Notes from the analysis:

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


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

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

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