Natural Resource - Comparative Multiple Analysis

Natural Resource (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Natural Resource

WikiWealth compares Natural Resource'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 Resource's comparative analysis.

Notes from the analysis:

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

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

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

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