Jack In The Box - Comparative Multiple Analysis

Jack In The Box (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Jack In The Box

WikiWealth compares Jack In The Box'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 Jack In The Box's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Jack In The Box by comparing Jack In The Box 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 Jack In The Box.

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

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