Steinway Musical - Comparative Multiple Analysis

Steinway Musical (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of Steinway Musical

WikiWealth compares Steinway Musical'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 Steinway Musical's comparative analysis.

Notes from the analysis:

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


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

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

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