MGM Mirage - Comparative Multiple Analysis

MGM Mirage (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of MGM Mirage

WikiWealth compares MGM Mirage'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 MGM Mirage's comparative analysis.

Notes from the analysis:

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

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

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

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