Plum Creek Timber - Comparative Multiple Analysis

Plum Creek Timber (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Plum Creek Timber

WikiWealth compares Plum Creek Timber'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 Plum Creek Timber's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Plum Creek Timber by comparing Plum Creek Timber 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 Plum Creek Timber.

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

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