Polo Ralph Lauren - Comparative Multiple Analysis

Polo Ralph Lauren (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Polo Ralph Lauren

WikiWealth compares Polo Ralph Lauren'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 Polo Ralph Lauren's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Polo Ralph Lauren by comparing Polo Ralph Lauren 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 Polo Ralph Lauren.

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

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