Herman Miller - Comparative Multiple Analysis

Herman Miller (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Herman Miller

WikiWealth compares Herman Miller'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 Herman Miller's comparative analysis.

Notes from the analysis:

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


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

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

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