Hittite Microwave - Comparative Multiple Analysis

Hittite Microwave (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Hittite Microwave

WikiWealth compares Hittite Microwave'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 Hittite Microwave's comparative analysis.

Notes from the analysis:

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


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

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

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