American Greetings - Comparative Multiple Analysis

American Greetings (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of American Greetings

WikiWealth compares American Greetings'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 American Greetings's comparative analysis.

Notes from the analysis:

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

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

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

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