Fred's - Comparative Multiple Analysis

Fred's (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Fred's

WikiWealth compares Fred's'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 Fred's's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Fred's by comparing Fred's 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 Fred's.

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

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