Endo Pharma - Comparative Multiple Analysis

Endo Pharma (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Endo Pharma

WikiWealth compares Endo Pharma'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 Endo Pharma's comparative analysis.

Notes from the analysis:

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


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

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

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