Orthofix Intl - Comparative Multiple Analysis

Orthofix Intl (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Orthofix Intl

WikiWealth compares Orthofix Intl'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 Orthofix Intl's comparative analysis.

Notes from the analysis:

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


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

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

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