Socket Mobile - Comparative Multiple Analysis

Socket Mobile (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Socket Mobile

WikiWealth compares Socket Mobile'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 Socket Mobile's comparative analysis.

Notes from the analysis:

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


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

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

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