Cabot Microelectronics - Comparative Multiple Analysis

Cabot Microelectronics (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Cabot Microelectronics

WikiWealth compares Cabot Microelectronics'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 Cabot Microelectronics's comparative analysis.

Notes from the analysis:

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


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

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

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