Bronco Drilling - Comparative Multiple Analysis

Bronco Drilling (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Bronco Drilling

WikiWealth compares Bronco Drilling'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 Bronco Drilling's comparative analysis.

Notes from the analysis:

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

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

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

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