DFC Global - Comparative Multiple Analysis

Dollar Financial (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Dollar Financial

WikiWealth compares Dollar 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 Dollar Financial's comparative analysis.

Notes from the analysis:

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


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

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

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