Avnet - Comparative Multiple Analysis

Avnet (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Avnet

WikiWealth compares Avnet'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 Avnet's comparative analysis.

Notes from the analysis:

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


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

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

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