Avid Technology - Comparative Multiple Analysis

Avid Technology (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Avid Technology

WikiWealth compares Avid Technology'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 Avid Technology's comparative analysis.

Notes from the analysis:

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


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

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

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