Clayton Williams Energy - Comparative Multiple Analysis

Clayton Williams Energy (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Clayton Williams Energy

WikiWealth compares Clayton Williams 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 Clayton Williams Energy's comparative analysis.

Notes from the analysis:

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

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

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

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