MGIC - Comparative Multiple Analysis

MGIC (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of MGIC

WikiWealth compares MGIC'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 MGIC's comparative analysis.

Notes from the analysis:

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

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

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

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