Universal Technical Institute - Comparative Multiple Analysis

Universal Technical Institute (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Universal Technical Institute

WikiWealth compares Universal Technical Institute'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 Technical Institute's comparative analysis.

Notes from the analysis:

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

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

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

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