SPX - Comparative Multiple Analysis

SPX (Comparative Multiple Analysis)

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Improve your investment analysis with by seeing the SPX's Discounted Cash Flow analysis, SPX's Warren Buffet analysis, and SPX's Weighted Average Cost of Capital (WACC) Analysis.

Notes on the Comparative Multiple Analysis of SPX

WikiWealth compares SPX'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 SPX's comparative analysis.

Notes from the analysis:

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


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

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

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