Online Resources Corp - Comparative Multiple Analysis

Online Resources Corp (Comparative Multiple Analysis)

placeholder_large_analysis.png
Banner%20-%20The%20perfect%20tool%20for%20investors%281%29.gif

Notes on the Comparative Multiple Analysis of Online Resources Corp

WikiWealth compares Online Resources Corp'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 Online Resources Corp's comparative analysis.

Notes from the analysis:

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


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

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

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