FX Energy - Comparative Multiple Analysis

FX Energy (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of FX Energy

WikiWealth compares FX 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 FX Energy's comparative analysis.

Notes from the analysis:

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


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

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

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