Energy Conversion Devices - Comparative Multiple Analysis

Energy Conversion Devices (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Energy Conversion Devices

WikiWealth compares Energy Conversion Devices'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 Energy Conversion Devices's comparative analysis.

Notes from the analysis:

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

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

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

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