Eastman Chemical - Comparative Multiple Analysis

Eastman Chemical (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Eastman Chemical

WikiWealth compares Eastman Chemical'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 Eastman Chemical's comparative analysis.

Notes from the analysis:

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


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

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

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