China-Biotics - Comparative Multiple Analysis

China-Biotics (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of China-Biotics

WikiWealth compares China-Biotics'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 China-Biotics's comparative analysis.

Notes from the analysis:

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


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

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

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