Alliance One - Comparative Multiple Analysis

Alliance One (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Alliance One

WikiWealth compares Alliance One'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 Alliance One's comparative analysis.

Notes from the analysis:

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


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

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

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