Super Micro Computer - Comparative Multiple Analysis

Super Micro Computer (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Super Micro Computer

WikiWealth compares Super Micro Computer'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 Super Micro Computer's comparative analysis.

Notes from the analysis:

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

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

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

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