EnergySolutions - Comparative Multiple Analysis

EnergySolutions (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of EnergySolutions

WikiWealth compares EnergySolutions'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 EnergySolutions's comparative analysis.

Notes from the analysis:

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

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

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

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