Air Products & Chemicals - Comparative Multiple Analysis

Air Products & Chemicals (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Air Products & Chemicals

WikiWealth compares Air Products & Chemicals'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 Air Products & Chemicals's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Air Products & Chemicals by comparing Air Products & Chemicals 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 Air Products & Chemicals.

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

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