Martha Stewart Living - Comparative Multiple Analysis

Martha Stewart Living (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Martha Stewart Living

WikiWealth compares Martha Stewart Living'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 Martha Stewart Living's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Martha Stewart Living by comparing Martha Stewart Living 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 Martha Stewart Living.

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

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