Actel - Comparative Multiple Analysis

Actel (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Actel

WikiWealth compares Actel'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 Actel's comparative analysis.

Notes from the analysis:

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


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

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

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