Advanced Semiconductor - Comparative Multiple Analysis

Advanced Semiconductor (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Advanced Semiconductor

WikiWealth compares Advanced Semiconductor'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 Advanced Semiconductor's comparative analysis.

Notes from the analysis:

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

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

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

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