Sunstone Hotel Investors - Comparative Multiple Analysis

Sunstone Hotel Investors (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Sunstone Hotel Investors

WikiWealth compares Sunstone Hotel Investors'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 Sunstone Hotel Investors's comparative analysis.

Notes from the analysis:

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

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

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

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