Evergreen Solar - Comparative Multiple Analysis

Evergreen Solar (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Evergreen Solar

WikiWealth compares Evergreen Solar'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 Evergreen Solar's comparative analysis.

Notes from the analysis:

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


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

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

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