The9 - Comparative Multiple Analysis

The9 (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of The9

WikiWealth compares The9'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 The9's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for The9.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to The9'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 The9's Analysis


How does this work? The Comparative Investment Analysis determines the value of The9 by comparing The9 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 The9.

See the The9 cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in The9.

Also, see the The9's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and The9's valuation conclusion for a quick summary.