Baytex Energy Trust - Comparative Multiple Analysis

Baytex Energy Trust (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Baytex Energy Trust

WikiWealth compares Baytex Energy Trust'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 Baytex Energy Trust's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Baytex Energy Trust by comparing Baytex Energy Trust 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 Baytex Energy Trust.

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

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