Span-America Medical - Comparative Multiple Analysis

Span-America Medical (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Span-America Medical

WikiWealth compares Span-America Medical'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 Span-America Medical's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Span-America Medical by comparing Span-America Medical 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 Span-America Medical.

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

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