Palomar Medical Tech - Comparative Multiple Analysis

Palomar Medical Tech (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Palomar Medical Tech

WikiWealth compares Palomar Medical Tech'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 Palomar Medical Tech's comparative analysis.

Notes from the analysis:

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


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

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

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