PDF Solutions - Comparative Multiple Analysis

PDF Solutions (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of PDF Solutions

WikiWealth compares PDF Solutions'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 PDF Solutions's comparative analysis.

Notes from the analysis:

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


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

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

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