Radware - Comparative Multiple Analysis

Radware (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of Radware

WikiWealth compares Radware'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 Radware's comparative analysis.

Notes from the analysis:

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


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

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

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