Atheros Communications - Comparative Multiple Analysis

Atheros Communications (Comparative Multiple Analysis)

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

Notes on the Comparative Multiple Analysis of Atheros Communications

WikiWealth compares Atheros Communications'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 Atheros Communications's comparative analysis.

Notes from the analysis:

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


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

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

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