Aqua America - Comparative Multiple Analysis

Aqua America (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Aqua America

WikiWealth compares Aqua America'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 Aqua America's comparative analysis.

Notes from the analysis:

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

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

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

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