Medical Properties - Comparative Multiple Analysis

Medical Properties (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Medical Properties

WikiWealth compares Medical Properties'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 Medical Properties's comparative analysis.

Notes from the analysis:

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

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

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

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