Cephalon - Comparative Multiple Analysis

Cephalon (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Cephalon

WikiWealth compares Cephalon'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 Cephalon's comparative analysis.

Notes from the analysis:

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


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

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

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