Beacon Roofing Supply - Comparative Multiple Analysis

Beacon Roofing Supply (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Beacon Roofing Supply

WikiWealth compares Beacon Roofing Supply'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 Beacon Roofing Supply's comparative analysis.

Notes from the analysis:

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

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

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

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