United Continental - Comparative Multiple Analysis

United Continental (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of United Continental

WikiWealth compares United Continental'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 United Continental's comparative analysis.

Notes from the analysis:

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


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

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

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