Sirius XM Satellite Radio - Comparative Multiple Analysis

Sirius XM Satellite Radio (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Sirius XM Satellite Radio

WikiWealth compares Sirius XM Satellite Radio'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 Sirius XM Satellite Radio's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Sirius XM Satellite Radio by comparing Sirius XM Satellite Radio 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 Sirius XM Satellite Radio.

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

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