Sun Hydraulics - Comparative Multiple Analysis

Sun Hydraulics (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Sun Hydraulics

WikiWealth compares Sun Hydraulics'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 Sun Hydraulics's comparative analysis.

Notes from the analysis:

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


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

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

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