Standard Motor Products - Comparative Multiple Analysis

Standard Motor Products (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Standard Motor Products

WikiWealth compares Standard Motor Products'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 Standard Motor Products's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Standard Motor Products by comparing Standard Motor Products 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 Standard Motor Products.

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

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