Eagle Materials - Comparative Multiple Analysis

Eagle Materials (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Eagle Materials

WikiWealth compares Eagle Materials'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 Materials's comparative analysis.

Notes from the analysis:

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


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

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

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