Bon-Ton Stores - Comparative Multiple Analysis

Bon-Ton Stores (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Bon-Ton Stores

WikiWealth compares Bon-Ton Stores'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 Bon-Ton Stores's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Bon-Ton Stores by comparing Bon-Ton Stores 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 Bon-Ton Stores.

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

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