BRF-Brasil Foods - Comparative Multiple Analysis

BRF-Brasil Foods (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of BRF-Brasil Foods

WikiWealth compares BRF-Brasil Foods'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 BRF-Brasil Foods's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of BRF-Brasil Foods by comparing BRF-Brasil Foods 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 BRF-Brasil Foods.

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

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