New Jersey Resources - Comparative Multiple Analysis

New Jersey Resources (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of New Jersey Resources

WikiWealth compares New Jersey Resources'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 New Jersey Resources's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of New Jersey Resources by comparing New Jersey Resources 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 New Jersey Resources.

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

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