Resources Connection - Comparative Multiple Analysis

Resources Connection (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Resources Connection

WikiWealth compares Resources Connection'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 Resources Connection's comparative analysis.

Notes from the analysis:

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

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

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

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