International Coal - Comparative Multiple Analysis

International Coal (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of International Coal

WikiWealth compares International Coal'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 International Coal's comparative analysis.

Notes from the analysis:

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

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

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

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