Regal-Beloit - Comparative Multiple Analysis

Regal-Beloit (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Regal-Beloit

WikiWealth compares Regal-Beloit'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 Regal-Beloit's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Regal-Beloit by comparing Regal-Beloit 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 Regal-Beloit.

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

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