Bank of the Ozarks - Comparative Multiple Analysis

Bank of the Ozarks (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Bank of the Ozarks

WikiWealth compares Bank of the Ozarks'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 Bank of the Ozarks's comparative analysis.

Notes from the analysis:

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

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

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

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