Nordson - Comparative Multiple Analysis

Nordson (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Nordson

WikiWealth compares Nordson'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 Nordson's comparative analysis.

Notes from the analysis:

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


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

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

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