Pepsi Bottling - Comparative Multiple Analysis

Pepsi Bottling (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Pepsi Bottling

WikiWealth compares Pepsi Bottling'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 Pepsi Bottling's comparative analysis.

Notes from the analysis:

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


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

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

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