South Financial - Comparative Multiple Analysis

South Financial (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of South Financial

WikiWealth compares South Financial'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 South Financial's comparative analysis.

Notes from the analysis:

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


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

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

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