Array BioPharma - Comparative Multiple Analysis

Array BioPharma (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Array BioPharma

WikiWealth compares Array BioPharma'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 Array BioPharma's comparative analysis.

Notes from the analysis:

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

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

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

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