Virage Logic - Comparative Multiple Analysis

Virage Logic (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Virage Logic

WikiWealth compares Virage Logic'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 Virage Logic's comparative analysis.

Notes from the analysis:

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


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

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

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