Netapp - Comparative Multiple Analysis

Netapp (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Netapp

WikiWealth compares Netapp'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 Netapp's comparative analysis.

Notes from the analysis:

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


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

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

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