Inter Parfums - Comparative Multiple Analysis

Inter Parfums (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Inter Parfums

WikiWealth compares Inter Parfums'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 Inter Parfums's comparative analysis.

Notes from the analysis:

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


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

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

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