Kansas City Southern - Comparative Multiple Analysis

Kansas City Southern (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Kansas City Southern

WikiWealth compares Kansas City Southern'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 Kansas City Southern's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Kansas City Southern by comparing Kansas City Southern 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 Kansas City Southern.

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

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