Eagle Rock Energy - Comparative Multiple Analysis

Eagle Rock Energy (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Eagle Rock Energy

WikiWealth compares Eagle Rock 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 Eagle Rock Energy's comparative analysis.

Notes from the analysis:

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


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

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

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