Cardinal Health - Comparative Multiple Analysis

Cardinal Health (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Cardinal Health

WikiWealth compares Cardinal Health'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 Cardinal Health's comparative analysis.

Notes from the analysis:

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


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

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

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