Avon Products - Comparative Multiple Analysis

Avon Products (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Avon Products

WikiWealth compares Avon Products'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 Avon Products's comparative analysis.

Notes from the analysis:

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

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

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

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