Dynamics Research - Comparative Multiple Analysis

Dynamics Research (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Dynamics Research

WikiWealth compares Dynamics Research'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 Dynamics Research's comparative analysis.

Notes from the analysis:

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

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

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

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