Young Innovations - Comparative Multiple Analysis

Young Innovations (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Young Innovations

WikiWealth compares Young Innovations'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 Young Innovations's comparative analysis.

Notes from the analysis:

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

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

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

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