Layne Christensen - Comparative Multiple Analysis

Layne Christensen (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Layne Christensen

WikiWealth compares Layne Christensen'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 Layne Christensen's comparative analysis.

Notes from the analysis:

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


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

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

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