NCI Building Sys - Comparative Multiple Analysis

NCI Building Sys (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of NCI Building Sys

WikiWealth compares NCI Building Sys'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 NCI Building Sys's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of NCI Building Sys by comparing NCI Building Sys 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 NCI Building Sys.

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

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