Otter Tail - Comparative Multiple Analysis

Otter Tail (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Otter Tail

WikiWealth compares Otter Tail'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 Otter Tail's comparative analysis.

Notes from the analysis:

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


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

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

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