World Heart Corp - Comparative Multiple Analysis

World Heart Corp (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of World Heart Corp

WikiWealth compares World Heart Corp'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 World Heart Corp's comparative analysis.

Notes from the analysis:

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


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

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

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