Berkshire Hills Bancorp - Comparative Multiple Analysis

Berkshire Hills Bancorp (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Berkshire Hills Bancorp

WikiWealth compares Berkshire Hills 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 Berkshire Hills Bancorp's comparative analysis.

Notes from the analysis:

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

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

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

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