USEC - Comparative Multiple Analysis

USEC (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of USEC

WikiWealth compares USEC'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 USEC's comparative analysis.

Notes from the analysis:

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


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

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

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