Sierra Bancorp - Comparative Multiple Analysis

Sierra Bancorp (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Sierra Bancorp

WikiWealth compares Sierra Bancorp'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 Sierra Bancorp's comparative analysis.

Notes from the analysis:

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


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

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

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