Plantronics - Comparative Multiple Analysis

Plantronics (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Plantronics

WikiWealth compares Plantronics'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 Plantronics's comparative analysis.

Notes from the analysis:

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


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

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

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