Newpark Resources - Comparative Multiple Analysis

Newpark Resources (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Newpark Resources

WikiWealth compares Newpark 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 Newpark Resources's comparative analysis.

Notes from the analysis:

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

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

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

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