China Digital TV - Comparative Multiple Analysis

China Digital TV (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of China Digital TV

WikiWealth compares China Digital TV'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 China Digital TV's comparative analysis.

Notes from the analysis:

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


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

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

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