Dyncorp - Comparative Multiple Analysis

Dyncorp (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Dyncorp

WikiWealth compares Dyncorp'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 Dyncorp's comparative analysis.

Notes from the analysis:

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


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

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

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