Peapack-Gladstone - Comparative Multiple Analysis

Peapack-Gladstone (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Peapack-Gladstone

WikiWealth compares Peapack-Gladstone'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 Peapack-Gladstone's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Peapack-Gladstone by comparing Peapack-Gladstone 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 Peapack-Gladstone.

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

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