Central Garden & Pet - Comparative Multiple Analysis

Central Garden & Pet (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of Central Garden & Pet

WikiWealth compares Central Garden & Pet'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 Central Garden & Pet's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Central Garden & Pet by comparing Central Garden & Pet 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 Central Garden & Pet.

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

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