Black Hills - Comparative Multiple Analysis

Black Hills (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Black Hills

WikiWealth compares Black Hills'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 Black Hills's comparative analysis.

Notes from the analysis:

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

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

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

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