Natural Gas Services - Comparative Multiple Analysis

Natural Gas Services (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Natural Gas Services

WikiWealth compares Natural Gas Services'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 Natural Gas Services's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Natural Gas Services by comparing Natural Gas Services 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 Natural Gas Services.

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

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