Ness Technologies - Comparative Multiple Analysis

Ness Technologies (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Ness Technologies

WikiWealth compares Ness Technologies'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 Ness Technologies's comparative analysis.

Notes from the analysis:

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


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

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

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