Carrizo Oil & Gas - Comparative Multiple Analysis

Carrizo Oil & Gas (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Carrizo Oil & Gas

WikiWealth compares Carrizo Oil & Gas'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 Carrizo Oil & Gas's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Carrizo Oil & Gas by comparing Carrizo Oil & Gas 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 Carrizo Oil & Gas.

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

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