Cepheid - Comparative Multiple Analysis

Cepheid (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Cepheid

WikiWealth compares Cepheid'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 Cepheid's comparative analysis.

Notes from the analysis:

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


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

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

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