Diana Shipping - Comparative Multiple Analysis

Diana Shipping (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Diana Shipping

WikiWealth compares Diana Shipping'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 Diana Shipping's comparative analysis.

Notes from the analysis:

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

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

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

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