Chipotle Mexican Grill - Comparative Multiple Analysis

Chipotle Mexican Grill (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Chipotle Mexican Grill

WikiWealth compares Chipotle Mexican Grill'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 Chipotle Mexican Grill's comparative analysis.

Notes from the analysis:

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


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

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

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