The Travelers Comp - Comparative Multiple Analysis

The Travelers Comp (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of The Travelers Comp

WikiWealth compares The Travelers Comp'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 The Travelers Comp's comparative analysis.

Notes from the analysis:

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

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

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

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