Quality Systems - Comparative Multiple Analysis

Quality Systems (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Quality Systems

WikiWealth compares Quality Systems'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 Quality Systems's comparative analysis.

Notes from the analysis:

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


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

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

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