Pep Boys - Comparative Multiple Analysis

Pep Boys (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Pep Boys

WikiWealth compares Pep Boys'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 Pep Boys's comparative analysis.

Notes from the analysis:

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


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

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

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