Prudential Public - Comparative Multiple Analysis

Prudential Public (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Prudential Public

WikiWealth compares Prudential Public'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 Prudential Public's comparative analysis.

Notes from the analysis:

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


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

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

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