Wilshire Bancorp - Comparative Multiple Analysis

Wilshire Bancorp (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Wilshire Bancorp

WikiWealth compares Wilshire Bancorp'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 Wilshire Bancorp's comparative analysis.

Notes from the analysis:

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


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

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

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