Cascade Microtech - Comparative Multiple Analysis

Cascade Microtech (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Cascade Microtech

WikiWealth compares Cascade Microtech'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 Cascade Microtech's comparative analysis.

Notes from the analysis:

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


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

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

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