BP Global - Comparative Multiple Analysis

BP Global (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of BP Global

WikiWealth compares BP Global'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 BP Global's comparative analysis.

Notes from the analysis:

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

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

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

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