Sally Beauty - Comparative Multiple Analysis

Sally Beauty (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Sally Beauty

WikiWealth compares Sally Beauty'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 Sally Beauty's comparative analysis.

Notes from the analysis:

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


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

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

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