First Financial Indiana - Comparative Multiple Analysis

First Financial Indiana (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of First Financial Indiana

WikiWealth compares First Financial Indiana'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 First Financial Indiana's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of First Financial Indiana by comparing First Financial Indiana 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 First Financial Indiana.

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

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