USG Corp - Comparative Multiple Analysis

USG Corp (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of USG Corp

WikiWealth compares USG Corp'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 USG Corp's comparative analysis.

Notes from the analysis:

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

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

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

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