AU Optronics - Comparative Multiple Analysis

AU Optronics (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of AU Optronics

WikiWealth compares AU Optronics'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 AU Optronics's comparative analysis.

Notes from the analysis:

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


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

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

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