Spectrum Control - Comparative Multiple Analysis

Spectrum Control (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Spectrum Control

WikiWealth compares Spectrum Control'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 Spectrum Control's comparative analysis.

Notes from the analysis:

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


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

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

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