Noven Pharma - Comparative Multiple Analysis

Noven Pharma (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Noven Pharma

WikiWealth compares Noven Pharma'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 Noven Pharma's comparative analysis.

Notes from the analysis:

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


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

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

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