Tw Telecom - Comparative Multiple Analysis

Tw Telecom (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Tw Telecom

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

Notes from the analysis:

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


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

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

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