Silicon Storage - Comparative Multiple Analysis

Silicon Storage (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Silicon Storage

WikiWealth compares Silicon Storage'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 Silicon Storage's comparative analysis.

Notes from the analysis:

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


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

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

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