Manhattan Associates - Comparative Multiple Analysis

Manhattan Associates (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Manhattan Associates

WikiWealth compares Manhattan Associates'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 Manhattan Associates's comparative analysis.

Notes from the analysis:

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

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

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

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