SuccessFactors - Comparative Multiple Analysis

SuccessFactors (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of SuccessFactors

WikiWealth compares SuccessFactors'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 SuccessFactors's comparative analysis.

Notes from the analysis:

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


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

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

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