Princeton Review - Comparative Multiple Analysis

Princeton Review (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Princeton Review

WikiWealth compares Princeton Review'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 Princeton Review's comparative analysis.

Notes from the analysis:

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

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

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

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