3D Systems - Comparative Multiple Analysis

3D Systems (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of 3D Systems

WikiWealth compares 3D Systems'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 3D Systems's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for 3D Systems.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to 3D Systems'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 3D Systems's Analysis


How does this work? The Comparative Investment Analysis determines the value of 3D Systems by comparing 3D Systems 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 3D Systems.

See the 3D Systems cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in 3D Systems.

Also, see the 3D Systems's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and 3D Systems's valuation conclusion for a quick summary.