Whole Foods - Comparative Multiple Analysis

Whole Foods (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Whole Foods

WikiWealth compares Whole Foods'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 Whole Foods's comparative analysis.

Notes from the analysis:

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


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

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

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