Websense - Comparative Multiple Analysis

Websense (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Websense

WikiWealth compares Websense'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 Websense's comparative analysis.

Notes from the analysis:

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


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

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

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