Astea International - Comparative Multiple Analysis

Astea International (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Astea International

WikiWealth compares Astea International'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 Astea International's comparative analysis.

Notes from the analysis:

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

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

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

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