Patriot Coal Corp - Comparative Multiple Analysis

Patriot Coal Corp (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Patriot Coal Corp

WikiWealth compares Patriot Coal Corp'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 Patriot Coal Corp's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of Patriot Coal Corp by comparing Patriot Coal Corp 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 Patriot Coal Corp.

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

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