Burger King - Comparative Multiple Analysis

Burger King (Comparative Multiple Analysis)

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Improve your investment analysis with by seeing the Burger King's Discounted Cash Flow analysis, Burger King's Warren Buffet analysis, and Burger King's Weighted Average Cost of Capital (WACC) Analysis.

Notes on the Comparative Multiple Analysis of Burger King

WikiWealth compares Burger King'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 Burger King's comparative analysis.

Notes from the analysis:

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


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

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

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