Charles River Labs - Comparative Multiple Analysis

Charles River Labs (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Charles River Labs

WikiWealth compares Charles River Labs'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 Charles River Labs's comparative analysis.

Notes from the analysis:

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

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

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

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