Flowers Foods - Comparative Multiple Analysis

Flowers Foods (Comparative Multiple Analysis)

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

Notes on the Comparative Multiple Analysis of Flowers Foods

WikiWealth compares Flowers 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 Flowers Foods's comparative analysis.

Notes from the analysis:

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


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

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

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