Old Second - Comparative Multiple Analysis

Old Second (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Old Second

WikiWealth compares Old Second'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 Old Second's comparative analysis.

Notes from the analysis:

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

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

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

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