Heritage-Crystal Clean - Comparative Multiple Analysis

Heritage-Crystal Clean (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Heritage-Crystal Clean

WikiWealth compares Heritage-Crystal Clean'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 Heritage-Crystal Clean's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Heritage-Crystal Clean by comparing Heritage-Crystal Clean 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 Heritage-Crystal Clean.

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

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