NxStage Medical - Comparative Multiple Analysis

NxStage Medical (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of NxStage Medical

WikiWealth compares NxStage Medical'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 NxStage Medical's comparative analysis.

Notes from the analysis:

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

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

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

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