Pool Corp - Comparative Multiple Analysis

Pool Corp (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Pool Corp

WikiWealth compares Pool Corp'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 Pool Corp's comparative analysis.

Notes from the analysis:

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

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

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

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