Converted Organics - Comparative Multiple Analysis

Converted Organics (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Converted Organics

WikiWealth compares Converted Organics'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 Converted Organics's comparative analysis.

Notes from the analysis:

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


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

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

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