Helmerich & Payne - Comparative Multiple Analysis

Helmerich & Payne (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Helmerich & Payne

WikiWealth compares Helmerich & Payne'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 Helmerich & Payne's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Helmerich & Payne by comparing Helmerich & Payne 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 Helmerich & Payne.

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

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