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TelegramIndependence Holding Company Financial Ratios 2020-2011 | IHC
Brief overview of Independence Holding Company's valuation multiples
The review covers five available annual periods spanning 2016 to 2020.
The current valuation set is P/E 29.92x (median 18.67x), P/B 1.2x (median 1.18x), P/CF 10.99x (median 14.76x). The combined ratio level is close to the company's five-year norm at a +2.1% deviation. No clear premium or discount is visible.
At the current P/E, inverse earnings yield is 3.3%, a useful bridge between price and business earnings.
The latest available business-quality ratios are ROE 4%, ROA 1.7%, ROCE 2.9%. Business quality is below comfortable levels on current returns. Better margins or turnover are needed.
On PEG (0.56x), valuation is restrained relative to growth, but one ratio cannot replace cash-flow and risk analysis.
High leverage is part of the financial-sector model, so valuation should be linked to capital, asset quality and ROE.
What the ratios show
Independence Holding Company's valuation and business quality look relatively balanced, with no pronounced distortion in either direction.
Annual Financial Ratios Independence Holding Company
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
|---|---|---|---|---|---|---|---|---|---|---|
P/E |
29.9 | 49.5 | 18.7 | 10.9 | 2.8 | 8.9 | 13.6 | 16.4 | 9.0 | 12.8 |
P/S |
1.3 | 1.6 | 1.5 | 1.4 | 1.1 | 0.5 | 0.4 | 0.4 | 0.4 | 0.4 |
EV/EBITDA |
14.3 | - | - | - | 9.4 | 5.7 | 8.8 | 8.7 | 6.9 | - |
PEG |
0.56 | -0.87 | -0.66 | -0.17 | 0.01 | 0.1 | 0.71 | -0.57 | 0.19 | -0.3 |
P/B |
1.2 | 1.3 | 1.2 | 1.1 | 0.8 | 0.8 | 0.7 | 0.8 | 0.6 | 0.6 |
P/CF |
11.0 | 15.7 | 14.8 | 16.0 | -11.0 | -1.6 | 8.1 | -1.4 | -1.5 | 6.0 |
ROE % |
4.02 | 2.70 | 6.31 | 9.68 | 28.07 | 9.00 | 5.41 | 4.95 | 6.49 | 4.71 |
ROA % |
1.74 | 1.18 | 2.75 | 4.04 | 10.87 | 2.50 | 1.37 | 1.09 | 1.56 | 0.96 |
ROCE % |
2.93 | - | - | - | 7.34 | 13.14 | 6.95 | 7.56 | 7.42 | - |
DSO |
317.7 | 379.4 | 409.1 | 458.4 | 567.1 | 383.8 | 233.0 | 279.1 | 215.0 | 94.8 |
All numbers in USD currency
Multiples are an important financial analysis tool for the company Independence Holding Company, allowing investors and analysts to quickly assess the company’s value and investment attractiveness based on the ratio of market indicators to the company’s financial performance. Essentially, multiples express how the market values the company relative to its earnings, revenue, equity, or other key metrics.
Advantages of Using Financial Ratios- Simplified Data Analysis
Financial ratios transform large volumes of accounting data into compact and easily interpretable indicators, significantly simplifying the assessment of the company’s condition. - Comparability Between Companies
Multiples standardize financial metrics, enabling objective comparison of companies of different sizes, industries, and market capitalizations. - Identification of Trends and Issues
Regular analysis of ratios helps track the dynamics of financial health, identify strengths and weaknesses of the business, as well as potential risks. - Decision Support
Financial multiples serve as an important tool for investors, creditors, and company management in making investment, credit, and managerial decisions. - Accelerated Assessment of Investment Attractiveness
Ratios allow quick determination of key performance, liquidity, and financial stability indicators, facilitating prompt evaluation of companies’ attractiveness for investments.
Using multiples enables comparison between companies, even if they differ in size or industry, as they standardize financial data into ratios convenient for analysis. This is especially useful for evaluating companies where direct analysis of financial statements may be complex or require in-depth knowledge.
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