Asbury Automotive - Comparative Multiple Analysis

Asbury Automotive (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Asbury Automotive

WikiWealth compares Asbury Automotive'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 Asbury Automotive's comparative analysis.

Notes from the analysis:

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


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

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

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