Constant Contact - Comparative Multiple Analysis

Constant Contact (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Constant Contact

WikiWealth compares Constant Contact'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 Constant Contact's comparative analysis.

Notes from the analysis:

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


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

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

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