American Superconductor - Comparative Multiple Analysis

American Superconductor (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of American Superconductor

WikiWealth compares American Superconductor'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 American Superconductor's comparative analysis.

Notes from the analysis:

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


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

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

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