Canadian National Railway - Comparative Multiple Analysis

Canadian National Railway (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Canadian National Railway

WikiWealth compares Canadian National Railway'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 Canadian National Railway's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Canadian National Railway by comparing Canadian National Railway 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 Canadian National Railway.

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

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