U.S. Auto Parts - Comparative Multiple Analysis

U.S. Auto Parts (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of U.S. Auto Parts

WikiWealth compares U.S. Auto Parts'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 U.S. Auto Parts's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of U.S. Auto Parts by comparing U.S. Auto Parts 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 U.S. Auto Parts.

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

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