First Financial Northwest - Comparative Multiple Analysis

First Financial Northwest (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of First Financial Northwest

WikiWealth compares First Financial Northwest'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 First Financial Northwest's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of First Financial Northwest by comparing First Financial Northwest 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 First Financial Northwest.

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

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