MEMC Electronic - Comparative Multiple Analysis

MEMC Electronic (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of MEMC Electronic

WikiWealth compares MEMC Electronic'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 MEMC Electronic's comparative analysis.

Notes from the analysis:

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

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

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

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