Burlington Northern - Comparative Multiple Analysis

Burlington Northern (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Burlington Northern

WikiWealth compares Burlington Northern'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 Burlington Northern's comparative analysis.

Notes from the analysis:

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


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

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

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