Farmers Capital Bank - Comparative Multiple Analysis

Farmers Capital Bank (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Farmers Capital Bank

WikiWealth compares Farmers Capital Bank'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 Farmers Capital Bank's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Farmers Capital Bank by comparing Farmers Capital Bank 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 Farmers Capital Bank.

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

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