Seattle Genetics - Comparative Multiple Analysis

Seattle Genetics (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Seattle Genetics

WikiWealth compares Seattle Genetics'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 Seattle Genetics's comparative analysis.

Notes from the analysis:

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


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

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

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