Mentor Graphics - Comparative Multiple Analysis

Mentor Graphics (Comparative Multiple Analysis)

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

Notes on the Comparative Multiple Analysis of Mentor Graphics

WikiWealth compares Mentor Graphics'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 Mentor Graphics's comparative analysis.

Notes from the analysis:

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


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

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

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