Potash of Saskatchewan - Comparative Multiple Analysis

Potash of Saskatchewan (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Potash of Saskatchewan

WikiWealth compares Potash of Saskatchewan'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 Potash of Saskatchewan's comparative analysis.

Notes from the analysis:

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

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

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

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