Cracker Barrel - Comparative Multiple Analysis

Cracker Barrel (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Cracker Barrel

WikiWealth compares Cracker Barrel'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 Cracker Barrel's comparative analysis.

Notes from the analysis:

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

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

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

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