Merchants Bancshares - Comparative Multiple Analysis

Merchants Bancshares (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Merchants Bancshares

WikiWealth compares Merchants Bancshares'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 Merchants Bancshares's comparative analysis.

Notes from the analysis:

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


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

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

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