Comparable Analysis
A fast food restaurant is seeking to understand valuation metrics in its sector. The company is a small footprint super regional fast food restaurant, that competes with a number of national chains (ie McDonalds). Put together a five comp analysis of the sector.
Step 1: Review the sector and determine five publicly held comparable companies.
Step 2: On the input worksheet, enter the five comps and the basic data necessary to determine the valuation metrics. Refer to Marketwatch, Yahoo finance, and many other sites as they have this data available.
Step 3: Based on your analysis and the results calculated on the valuation worksheet, determine what might be a baseline or median valuation and answer the questions below.
Question 1: What is a reasonable median Total Enterprise Value/EBITDA?
Question 2: What is a reasonable median Total Enterprise Value/Revenues?