Nam Tai Electronics - Comparative Multiple Analysis

Nam Tai Electronics (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Nam Tai Electronics

WikiWealth compares Nam Tai Electronics'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 Nam Tai Electronics's comparative analysis.

Notes from the analysis:

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

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

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

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