Blackbaud - Comparative Multiple Analysis

Blackbaud (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Blackbaud

WikiWealth compares Blackbaud'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 Blackbaud's comparative analysis.

Notes from the analysis:

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


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

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

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