China Sky One Medical - Comparative Multiple Analysis

China Sky One Medical (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of China Sky One Medical

WikiWealth compares China Sky One Medical'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 China Sky One Medical's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of China Sky One Medical by comparing China Sky One Medical 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 China Sky One Medical.

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

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