Hugoton Royalty Trust - Comparative Multiple Analysis

Hugoton Royalty Trust (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Hugoton Royalty Trust

WikiWealth compares Hugoton Royalty Trust'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 Hugoton Royalty Trust's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Hugoton Royalty Trust by comparing Hugoton Royalty Trust 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 Hugoton Royalty Trust.

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

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