CNA Surety - Comparative Multiple Analysis

CNA Surety (Comparative Multiple Analysis)

placeholder_large_analysis.png
Banner%20-%20The%20perfect%20tool%20for%20investors%281%29.gif

Notes on the Comparative Multiple Analysis of CNA Surety

WikiWealth compares CNA Surety'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 CNA Surety's comparative analysis.

Notes from the analysis:

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


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

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

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