West Bancorporation - Comparative Multiple Analysis

West Bancorporation (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of West Bancorporation

WikiWealth compares West Bancorporation'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 West Bancorporation's comparative analysis.

Notes from the analysis:

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


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

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

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