Banco Itau Holding Financeira - Comparative Multiple Analysis

Banco Itau Holding Financeira (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Banco Itau Holding Financeira

WikiWealth compares Banco Itau Holding Financeira'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 Banco Itau Holding Financeira's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Banco Itau Holding Financeira by comparing Banco Itau Holding Financeira 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 Banco Itau Holding Financeira.

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

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