Prestige Brand - Comparative Multiple Analysis

Prestige Brand (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Prestige Brand

WikiWealth compares Prestige Brand'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 Prestige Brand's comparative analysis.

Notes from the analysis:

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


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

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

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