Nexstar Broadcasting - Comparative Multiple Analysis

Nexstar Broadcasting (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Nexstar Broadcasting

WikiWealth compares Nexstar Broadcasting'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 Nexstar Broadcasting's comparative analysis.

Notes from the analysis:

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

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

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

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