Daktronics - Comparative Multiple Analysis

Daktronics (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Daktronics

WikiWealth compares Daktronics'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 Daktronics's comparative analysis.

Notes from the analysis:

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


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

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

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