Chattem - Comparative Multiple Analysis

Chattem (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Chattem

WikiWealth compares Chattem'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 Chattem's comparative analysis.

Notes from the analysis:

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


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

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

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