Crane Company - Comparative Multiple Analysis

Crane Company (Comparative Multiple Analysis)

placeholder_large_analysis.png
Banner%20-%20The%20perfect%20tool%20for%20investors%281%29.gif

Notes on the Comparative Multiple Analysis of Crane Company

WikiWealth compares Crane Company'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 Crane Company's comparative analysis.

Notes from the analysis:

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


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

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

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