Wuxi Pharmatech - Comparative Multiple Analysis

Wuxi Pharmatech (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Wuxi Pharmatech

WikiWealth compares Wuxi Pharmatech'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 Wuxi Pharmatech's comparative analysis.

Notes from the analysis:

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

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

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

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