Tempur-pedic Intl - Comparative Multiple Analysis

Tempur-pedic Intl (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Tempur-pedic Intl

WikiWealth compares Tempur-pedic Intl'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 Tempur-pedic Intl's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Tempur-pedic Intl by comparing Tempur-pedic Intl 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 Tempur-pedic Intl.

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

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