Petrohawk Energy - Comparative Multiple Analysis

Petrohawk Energy (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Petrohawk Energy

WikiWealth compares Petrohawk 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 Petrohawk Energy's comparative analysis.

Notes from the analysis:

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


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

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

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