Lakes Entertainment - Comparative Multiple Analysis

Lakes Entertainment (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Lakes Entertainment

WikiWealth compares Lakes Entertainment'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 Lakes Entertainment's comparative analysis.

Notes from the analysis:

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

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

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

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