Foster Wheeler - Comparative Multiple Analysis

Foster Wheeler (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Foster Wheeler

WikiWealth compares Foster Wheeler'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 Foster Wheeler's comparative analysis.

Notes from the analysis:

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


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

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

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