TriCo Bancshares - Comparative Multiple Analysis

TriCo Bancshares (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of TriCo Bancshares

WikiWealth compares TriCo Bancshares'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 TriCo Bancshares's comparative analysis.

Notes from the analysis:

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

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

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

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