Cal-Maine Foods - Comparative Multiple Analysis

Cal-Maine Foods (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Cal-Maine Foods

WikiWealth compares Cal-Maine Foods'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 Cal-Maine Foods's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Cal-Maine Foods by comparing Cal-Maine Foods 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 Cal-Maine Foods.

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

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