Heritage Commerce - Comparative Multiple Analysis

Heritage Commerce (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Heritage Commerce

WikiWealth compares Heritage Commerce'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 Commerce's comparative analysis.

Notes from the analysis:

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


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

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

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