MSC Industrial Direct - Comparative Multiple Analysis

MSC Industrial Direct (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of MSC Industrial Direct

WikiWealth compares MSC Industrial Direct'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 MSC Industrial Direct's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of MSC Industrial Direct by comparing MSC Industrial Direct 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 MSC Industrial Direct.

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

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