Collective Brands - Comparative Multiple Analysis

Collective Brands (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Collective Brands

WikiWealth compares Collective Brands'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 Collective Brands's comparative analysis.

Notes from the analysis:

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


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

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

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