Kimberly-Clark - Comparative Multiple Analysis

Kimberly-Clark (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Kimberly-Clark

WikiWealth compares Kimberly-Clark'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 Kimberly-Clark's comparative analysis.

Notes from the analysis:

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

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

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

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