Caribou Coffee - Comparative Multiple Analysis

Caribou Coffee (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Caribou Coffee

WikiWealth compares Caribou Coffee'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 Caribou Coffee's comparative analysis.

Notes from the analysis:

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

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

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

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