Pericom Semiconductor - Comparative Multiple Analysis

Pericom Semiconductor (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Pericom Semiconductor

WikiWealth compares Pericom Semiconductor'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 Pericom Semiconductor's comparative analysis.

Notes from the analysis:

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


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

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

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