Westamerica - Comparative Multiple Analysis

Westamerica (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Westamerica

WikiWealth compares Westamerica'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 Westamerica's comparative analysis.

Notes from the analysis:

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

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

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

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