Parkway Properties - Comparative Multiple Analysis

Parkway Properties (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Parkway Properties

WikiWealth compares Parkway 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 Parkway Properties's comparative analysis.

Notes from the analysis:

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

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

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

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