Silicon Graphics - Comparative Multiple Analysis

Silicon Graphics (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Silicon Graphics

WikiWealth compares Silicon 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 Silicon Graphics's comparative analysis.

Notes from the analysis:

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


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

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

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