Neenah Paper - Comparative Multiple Analysis

Neenah Paper (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Neenah Paper

WikiWealth compares Neenah Paper'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 Neenah Paper's comparative analysis.

Notes from the analysis:

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

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

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

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