SonicWALL - Comparative Multiple Analysis

SonicWALL (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of SonicWALL

WikiWealth compares SonicWALL'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 SonicWALL's comparative analysis.

Notes from the analysis:

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


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

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

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