Digital River - Comparative Multiple Analysis

Digital River (Comparative Multiple Analysis)

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

Notes on the Comparative Multiple Analysis of Digital River

WikiWealth compares Digital River'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 Digital River's comparative analysis.

Notes from the analysis:

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


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

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

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