First Midwest - Comparative Multiple Analysis

First Midwest (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of First Midwest

WikiWealth compares First Midwest'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 Midwest's comparative analysis.

Notes from the analysis:

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


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

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

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