Gammon Lake Resources - Comparative Multiple Analysis

Gammon Lake Resources (Comparative Multiple Analysis)

placeholder_large_analysis.png
Banner%20-%20The%20perfect%20tool%20for%20investors%281%29.gif

Notes on the Comparative Multiple Analysis of Gammon Lake Resources

WikiWealth compares Gammon Lake Resources'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 Gammon Lake Resources's comparative analysis.

Notes from the analysis:

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


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

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

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