Sigma-Aldrich - Comparative Multiple Analysis

Sigma-Aldrich (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Sigma-Aldrich

WikiWealth compares Sigma-Aldrich'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 Sigma-Aldrich's comparative analysis.

Notes from the analysis:

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


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

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

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