Cheesecake Factory - Comparative Multiple Analysis

Cheesecake Factory (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Cheesecake Factory

WikiWealth compares Cheesecake Factory'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 Cheesecake Factory's comparative analysis.

Notes from the analysis:

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

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

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

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