Toronto Dominion - Comparative Multiple Analysis

Toronto Dominion (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Toronto Dominion

WikiWealth compares Toronto Dominion'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 Toronto Dominion's comparative analysis.

Notes from the analysis:

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


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

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

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