MGE Energy - Comparative Multiple Analysis

MGE Energy (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of MGE Energy

WikiWealth compares MGE Energy'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 MGE Energy's comparative analysis.

Notes from the analysis:

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


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

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

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