Smith Micro Software - Comparative Multiple Analysis

Smith Micro Software (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Smith Micro Software

WikiWealth compares Smith Micro Software'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 Smith Micro Software's comparative analysis.

Notes from the analysis:

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


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

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

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