Varian Medical - Comparative Multiple Analysis

Varian Medical (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Varian Medical

WikiWealth compares Varian Medical'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 Varian Medical's comparative analysis.

Notes from the analysis:

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


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

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

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