Natus Medical - Comparative Multiple Analysis

Natus Medical (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Natus Medical

WikiWealth compares Natus Medical'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 Natus Medical's comparative analysis.

Notes from the analysis:

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

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

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

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