Value Line - Comparative Multiple Analysis

Value Line (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Value Line

WikiWealth compares Value Line'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 Value Line's comparative analysis.

Notes from the analysis:

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


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

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

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