Alamo - Comparative Multiple Analysis

Alamo (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Alamo

WikiWealth compares Alamo'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 Alamo's comparative analysis.

Notes from the analysis:

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

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

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

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