Zenith National Insurance - Comparative Multiple Analysis

Zenith National Insurance (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Zenith National Insurance

WikiWealth compares Zenith National Insurance'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 Zenith National Insurance's comparative analysis.

Notes from the analysis:

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

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

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

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