JA Solar - Comparative Multiple Analysis

JA Solar (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of JA Solar

WikiWealth compares JA Solar'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 JA Solar's comparative analysis.

Notes from the analysis:

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

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

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

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