Blackboard - Comparative Multiple Analysis

Blackboard (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Blackboard

WikiWealth compares Blackboard'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 Blackboard's comparative analysis.

Notes from the analysis:

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

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

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

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