Hanwha SolarOne Power - Comparative Multiple Analysis

Hanwha SolarOne Power (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Hanwha SolarOne Power

WikiWealth compares Hanwha SolarOne Power'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 Hanwha SolarOne Power's comparative analysis.

Notes from the analysis:

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

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

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

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