Old Dominion Freight Line - Comparative Multiple Analysis

Old Dominion Freight Line (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Old Dominion Freight Line

WikiWealth compares Old Dominion Freight Line'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 Old Dominion Freight Line's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Old Dominion Freight Line by comparing Old Dominion Freight Line 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 Old Dominion Freight Line.

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

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