Chico's FAS - Comparative Multiple Analysis

Chico's FAS (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Chico's FAS

WikiWealth compares Chico's FAS'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 Chico's FAS's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Chico's FAS by comparing Chico's FAS 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 Chico's FAS.

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

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