PTEK - Comparative Multiple Analysis

PTEK (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of PTEK

WikiWealth compares PTEK'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 PTEK's comparative analysis.

Notes from the analysis:

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

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

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

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