Chesapeake Energy - Comparative Multiple Analysis

Chesapeake Energy (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Chesapeake Energy

WikiWealth compares Chesapeake Energy'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 Chesapeake Energy's comparative analysis.

Notes from the analysis:

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

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

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

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