Royal Bank Of Canada - Comparative Multiple Analysis

Royal Bank Of Canada (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Royal Bank Of Canada

WikiWealth compares Royal Bank Of Canada'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 Royal Bank Of Canada's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Royal Bank Of Canada by comparing Royal Bank Of Canada 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 Royal Bank Of Canada.

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

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