Wind River Systems - Comparative Multiple Analysis

Wind River Systems (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Wind River Systems

WikiWealth compares Wind River Systems'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 Wind River Systems's comparative analysis.

Notes from the analysis:

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


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

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

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