Stec Inc - Comparative Multiple Analysis

Stec Inc (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Stec Inc

WikiWealth compares Stec Inc'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 Stec Inc's comparative analysis.

Notes from the analysis:

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

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

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

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