Telecom Italia - Comparative Multiple Analysis

Telecom Italia (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Telecom Italia

WikiWealth compares Telecom Italia'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 Telecom Italia's comparative analysis.

Notes from the analysis:

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


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

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

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