Sterling Bancorp - Comparative Multiple Analysis

Sterling Bancorp (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Sterling Bancorp

WikiWealth compares Sterling Bancorp'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 Sterling Bancorp's comparative analysis.

Notes from the analysis:

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

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

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

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