Nidec Corp - Comparative Multiple Analysis

Nidec Corp (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Nidec Corp

WikiWealth compares Nidec Corp'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 Nidec Corp's comparative analysis.

Notes from the analysis:

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


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

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

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