KBW - Comparative Multiple Analysis

KBW (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of KBW

WikiWealth compares KBW'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 KBW's comparative analysis.

Notes from the analysis:

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

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

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

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