Children's Place - Comparative Multiple Analysis

Children's Place (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Children's Place

WikiWealth compares Children's Place'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 Children's Place's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Children's Place by comparing Children's Place 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 Children's Place.

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

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