Clean Harbors - Comparative Multiple Analysis

Clean Harbors (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Clean Harbors

WikiWealth compares Clean Harbors'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 Clean Harbors's comparative analysis.

Notes from the analysis:

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

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

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

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