Fifth Street Finance - Comparative Multiple Analysis

Fifth Street Finance (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Fifth Street Finance

WikiWealth compares Fifth Street Finance'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 Fifth Street Finance's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Fifth Street Finance by comparing Fifth Street Finance 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 Fifth Street Finance.

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

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