World Fuel Services - Comparative Multiple Analysis

World Fuel Services (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of World Fuel Services

WikiWealth compares World Fuel Services'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 World Fuel Services's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of World Fuel Services by comparing World Fuel Services 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 World Fuel Services.

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

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