Diamond Foods - Comparative Multiple Analysis

Diamond Foods (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of Diamond Foods

WikiWealth compares Diamond Foods'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 Diamond Foods's comparative analysis.

Notes from the analysis:

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


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

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

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