McMoRan Exploration - Comparative Multiple Analysis

McMoRan Exploration (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of McMoRan Exploration

WikiWealth compares McMoRan Exploration'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 McMoRan Exploration's comparative analysis.

Notes from the analysis:

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


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

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

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