AnnTaylor - Comparative Multiple Analysis

AnnTaylor (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of AnnTaylor

WikiWealth compares AnnTaylor'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 AnnTaylor's comparative analysis.

Notes from the analysis:

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


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

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

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