Great Atlantic & Pacific Tea - Comparative Multiple Analysis

Great Atlantic & Pacific Tea (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Great Atlantic & Pacific Tea

WikiWealth compares Great Atlantic & Pacific Tea'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 Great Atlantic & Pacific Tea's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Great Atlantic & Pacific Tea by comparing Great Atlantic & Pacific Tea 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 Great Atlantic & Pacific Tea.

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

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