Neurocrine Biosciences - Comparative Multiple Analysis

Neurocrine Biosciences (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Neurocrine Biosciences

WikiWealth compares Neurocrine Biosciences'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 Neurocrine Biosciences's comparative analysis.

Notes from the analysis:

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

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

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

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