PDL BioPharma - Comparative Multiple Analysis

PDL BioPharma (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of PDL BioPharma

WikiWealth compares PDL BioPharma'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 PDL BioPharma's comparative analysis.

Notes from the analysis:

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

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

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

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