CPI Intl - Comparative Multiple Analysis

CPI Intl (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of CPI Intl

WikiWealth compares CPI Intl'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 CPI Intl's comparative analysis.

Notes from the analysis:

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


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

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

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