Franklin Resources - Comparative Multiple Analysis

Franklin Resources (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Franklin Resources

WikiWealth compares Franklin Resources'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 Franklin Resources's comparative analysis.

Notes from the analysis:

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

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

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

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