Ariba - Comparative Multiple Analysis

Ariba (Comparative Multiple Analysis)

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Improve your investment analysis with by seeing the Ariba's Discounted Cash Flow analysis, Ariba's Warren Buffet analysis, and Ariba's Weighted Average Cost of Capital (WACC) Analysis.

Notes on the Comparative Multiple Analysis of Ariba

WikiWealth compares Ariba'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 Ariba's comparative analysis.

Notes from the analysis:

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


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

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

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