Trina Solar - Comparative Multiple Analysis

Trina Solar (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Trina Solar

WikiWealth compares Trina Solar'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 Trina Solar's comparative analysis.

Notes from the analysis:

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


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

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

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