RadiSys - Comparative Multiple Analysis

RadiSys (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of RadiSys

WikiWealth compares RadiSys'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 RadiSys's comparative analysis.

Notes from the analysis:

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


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

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

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