California Pizza Kitchen - Comparative Multiple Analysis

California Pizza Kitchen (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of California Pizza Kitchen

WikiWealth compares California Pizza Kitchen'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 California Pizza Kitchen's comparative analysis.

Notes from the analysis:

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


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

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

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