Stanley Black & Decker - Comparative Multiple Analysis

Stanley Black & Decker (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Stanley Black & Decker

WikiWealth compares Stanley Black & Decker'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 Stanley Black & Decker's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Stanley Black & Decker by comparing Stanley Black & Decker 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 Stanley Black & Decker.

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

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