EMC - Comparative Multiple Analysis

EMC (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of EMC

WikiWealth compares EMC'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 EMC's comparative analysis.

Notes from the analysis:

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


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

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

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