Chesapeake Utilities - Comparative Multiple Analysis

Chesapeake Utilities (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Chesapeake Utilities

WikiWealth compares Chesapeake Utilities'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 Utilities's comparative analysis.

Notes from the analysis:

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


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

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

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