Preformed Line Products - Comparative Multiple Analysis

Preformed Line Products (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Preformed Line Products

WikiWealth compares Preformed Line Products'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 Preformed Line Products's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Preformed Line Products by comparing Preformed Line Products 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 Preformed Line Products.

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

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