Virtual Radiologic - Comparative Multiple Analysis

Virtual Radiologic (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Virtual Radiologic

WikiWealth compares Virtual Radiologic'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 Virtual Radiologic's comparative analysis.

Notes from the analysis:

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


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

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

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