Kraft Foods - Comparative Multiple Analysis

Kraft Foods (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of Kraft Foods

WikiWealth compares Kraft Foods'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 Kraft Foods's comparative analysis.

Notes from the analysis:

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


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

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

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