Cognex - Comparative Multiple Analysis

Cognex (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Cognex

WikiWealth compares Cognex'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 Cognex's comparative analysis.

Notes from the analysis:

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

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

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

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