ShoreTel - Comparative Multiple Analysis

ShoreTel (Comparative Multiple Analysis)

placeholder_large_analysis.png
Banner%20-%20The%20perfect%20tool%20for%20investors%281%29.gif

Notes on the Comparative Multiple Analysis of ShoreTel

WikiWealth compares ShoreTel'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 ShoreTel's comparative analysis.

Notes from the analysis:

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


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

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

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