James River Coal - Comparative Multiple Analysis

James River Coal (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of James River Coal

WikiWealth compares James River 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 James River Coal's comparative analysis.

Notes from the analysis:

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


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

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

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