ev3 - Comparative Multiple Analysis

ev3 (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of ev3

WikiWealth compares ev3'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 ev3's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for ev3.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to ev3'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 ev3's Analysis


How does this work? The Comparative Investment Analysis determines the value of ev3 by comparing ev3 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 ev3.

See the ev3 cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in ev3.

Also, see the ev3's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and ev3's valuation conclusion for a quick summary.