Atmel - Comparative Multiple Analysis

Atmel (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Atmel

WikiWealth compares Atmel'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 Atmel's comparative analysis.

Notes from the analysis:

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


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

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

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