Computer Sciences - Comparative Multiple Analysis

Computer Sciences (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Computer Sciences

WikiWealth compares Computer Sciences'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 Computer Sciences's comparative analysis.

Notes from the analysis:

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

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

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

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