Parametric Tech - Comparative Multiple Analysis

Parametric Tech (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Parametric Tech

WikiWealth compares Parametric Tech'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 Parametric Tech's comparative analysis.

Notes from the analysis:

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


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

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

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