SonoSite - Comparative Multiple Analysis

SonoSite (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of SonoSite

WikiWealth compares SonoSite'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 SonoSite's comparative analysis.

Notes from the analysis:

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

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

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

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