RC2 Corp - Comparative Multiple Analysis

RC2 Corp (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of RC2 Corp

WikiWealth compares RC2 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 RC2 Corp's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for RC2 Corp.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to RC2 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 RC2 Corp's Analysis

How does this work? The Comparative Investment Analysis determines the value of RC2 Corp by comparing RC2 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 RC2 Corp.

See the RC2 Corp cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in RC2 Corp.

Also, see the RC2 Corp's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and RC2 Corp's valuation conclusion for a quick summary.