Charlotte Russe - Comparative Multiple Analysis

Charlotte Russe (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Charlotte Russe

WikiWealth compares Charlotte Russe'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 Charlotte Russe's comparative analysis.

Notes from the analysis:

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


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

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

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