Advanced Energy Inds - Comparative Multiple Analysis

Advanced Energy Inds (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Advanced Energy Inds

WikiWealth compares Advanced Energy Inds'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 Advanced Energy Inds's comparative analysis.

Notes from the analysis:

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


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

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

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