Orbital Sciences - Comparative Multiple Analysis

Orbital Sciences (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Orbital Sciences

WikiWealth compares Orbital Sciences'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 Orbital Sciences's comparative analysis.

Notes from the analysis:

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

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

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

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