Cytokinetics - Comparative Multiple Analysis

Cytokinetics (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Cytokinetics

WikiWealth compares Cytokinetics'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 Cytokinetics's comparative analysis.

Notes from the analysis:

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

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

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

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