Telemig - Comparative Multiple Analysis

Telemig (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Telemig

WikiWealth compares Telemig'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 Telemig's comparative analysis.

Notes from the analysis:

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


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

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

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