SumTotal Systems - Comparative Multiple Analysis

SumTotal Systems (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of SumTotal Systems

WikiWealth compares SumTotal Systems'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 SumTotal Systems's comparative analysis.

Notes from the analysis:

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


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

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

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