Cullen/Frost Bankers - Comparative Multiple Analysis

Cullen/Frost Bankers (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Cullen/Frost Bankers

WikiWealth compares Cullen/Frost Bankers'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 Cullen/Frost Bankers's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Cullen/Frost Bankers by comparing Cullen/Frost Bankers 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 Cullen/Frost Bankers.

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

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