Double-Take Software - Comparative Multiple Analysis

Double-Take Software (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Double-Take Software

WikiWealth compares Double-Take Software'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 Double-Take Software's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Double-Take Software by comparing Double-Take Software 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 Double-Take Software.

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

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