Neutral Tandem - Comparative Multiple Analysis

Neutral Tandem (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Neutral Tandem

WikiWealth compares Neutral Tandem'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 Neutral Tandem's comparative analysis.

Notes from the analysis:

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


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

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

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