Kaiser Aluminum - Comparative Multiple Analysis

Kaiser Aluminum (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Kaiser Aluminum

WikiWealth compares Kaiser Aluminum'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 Kaiser Aluminum's comparative analysis.

Notes from the analysis:

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

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

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

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