Palm Harbor Homes - Comparative Multiple Analysis

Palm Harbor Homes (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Palm Harbor Homes

WikiWealth compares Palm Harbor Homes'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 Palm Harbor Homes's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Palm Harbor Homes by comparing Palm Harbor Homes 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 Palm Harbor Homes.

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

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