Capital Southwest - Comparative Multiple Analysis

Capital Southwest (Comparative Multiple Analysis)

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

Notes on the Comparative Multiple Analysis of Capital Southwest

WikiWealth compares Capital Southwest'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 Capital Southwest's comparative analysis.

Notes from the analysis:

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


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

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

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