International Rectifier - Comparative Multiple Analysis

International Rectifier (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of International Rectifier

WikiWealth compares International Rectifier'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 International Rectifier's comparative analysis.

Notes from the analysis:

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


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

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

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