Genuine Parts - Comparative Multiple Analysis

Genuine Parts (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Genuine Parts

WikiWealth compares Genuine Parts'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 Genuine Parts's comparative analysis.

Notes from the analysis:

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


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

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

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