Universal Health Services - Comparative Multiple Analysis

Universal Health Services (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Universal Health Services

WikiWealth compares Universal Health Services'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 Universal Health Services's comparative analysis.

Notes from the analysis:

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


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

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

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