F5 Networks - Comparative Multiple Analysis

F5 Networks (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of F5 Networks

WikiWealth compares F5 Networks'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 F5 Networks's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for F5 Networks.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to F5 Networks'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 F5 Networks's Analysis


How does this work? The Comparative Investment Analysis determines the value of F5 Networks by comparing F5 Networks 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 F5 Networks.

See the F5 Networks cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in F5 Networks.

Also, see the F5 Networks's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and F5 Networks's valuation conclusion for a quick summary.