Simpson Manufacturing - Comparative Multiple Analysis

Simpson Manufacturing (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Simpson Manufacturing

WikiWealth compares Simpson Manufacturing'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 Simpson Manufacturing's comparative analysis.

Notes from the analysis:

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

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

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

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