Research in Motion - Comparative Multiple Analysis

Research in Motion (Comparative Multiple Analysis)

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Improve your investment analysis with by seeing the Research in Motion's Discounted Cash Flow analysis, Research in Motion's Warren Buffet analysis, and Research in Motion's Weighted Average Cost of Capital (WACC) Analysis.

Notes on the Comparative Multiple Analysis of Research in Motion

WikiWealth compares Research in Motion'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 Research in Motion's comparative analysis.

Notes from the analysis:

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


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

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

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