Pain Therapeutics - Comparative Multiple Analysis

Pain Therapeutics (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Pain Therapeutics

WikiWealth compares Pain Therapeutics'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 Pain Therapeutics's comparative analysis.

Notes from the analysis:

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


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

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

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