SLM - Comparative Multiple Analysis

SLM (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of SLM

WikiWealth compares SLM'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 SLM's comparative analysis.

Notes from the analysis:

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


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

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

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