Ciena - Comparative Multiple Analysis

Ciena (Comparative Multiple Analysis)

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

Notes on the Comparative Multiple Analysis of Ciena

WikiWealth compares Ciena'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 Ciena's comparative analysis.

Notes from the analysis:

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


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

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

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