Great Northern Iron Ore - Comparative Multiple Analysis

Great Northern Iron Ore (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Great Northern Iron Ore

WikiWealth compares Great Northern Iron Ore'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 Great Northern Iron Ore's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Great Northern Iron Ore by comparing Great Northern Iron Ore 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 Great Northern Iron Ore.

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

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