Thor Industries - Comparative Multiple Analysis

Thor Industries (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of Thor Industries

WikiWealth compares Thor Industries'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 Thor Industries's comparative analysis.

Notes from the analysis:

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


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

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

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