American Dental Partners - Comparative Multiple Analysis

American Dental Partners (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of American Dental Partners

WikiWealth compares American Dental Partners'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 American Dental Partners's comparative analysis.

Notes from the analysis:

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


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

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

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