P.F.Chang's China Bistro - Comparative Multiple Analysis

P.F.Chang's China Bistro (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of P.F.Chang's China Bistro

WikiWealth compares P.F.Chang's China Bistro'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 P.F.Chang's China Bistro's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of P.F.Chang's China Bistro by comparing P.F.Chang's China Bistro 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 P.F.Chang's China Bistro.

See the P.F.Chang's China Bistro cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in P.F.Chang's China Bistro.

Also, see the P.F.Chang's China Bistro's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and P.F.Chang's China Bistro's valuation conclusion for a quick summary.