Micron Tech - Comparative Multiple Analysis

Micron Tech (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Micron Tech

WikiWealth compares Micron Tech'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 Micron Tech's comparative analysis.

Notes from the analysis:

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


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

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

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