AeroVironment - Comparative Multiple Analysis

AeroVironment (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of AeroVironment

WikiWealth compares AeroVironment'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 AeroVironment's comparative analysis.

Notes from the analysis:

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

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

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

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