Rockwell Automation - Comparative Multiple Analysis

Rockwell Automation (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Rockwell Automation

WikiWealth compares Rockwell Automation'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 Rockwell Automation's comparative analysis.

Notes from the analysis:

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

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

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

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