PSS World Medical - Comparative Multiple Analysis

PSS World Medical (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of PSS World Medical

WikiWealth compares PSS World Medical'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 PSS World Medical's comparative analysis.

Notes from the analysis:

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

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

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

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