CardioNet - Comparative Multiple Analysis

CardioNet (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of CardioNet

WikiWealth compares CardioNet'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 CardioNet's comparative analysis.

Notes from the analysis:

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


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

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

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