Novell - Comparative Multiple Analysis

Novell (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Novell

WikiWealth compares Novell'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 Novell's comparative analysis.

Notes from the analysis:

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


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

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

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