MKS Instruments - Comparative Multiple Analysis

MKS Instruments (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of MKS Instruments

WikiWealth compares MKS Instruments'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 MKS Instruments's comparative analysis.

Notes from the analysis:

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

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

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

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