Providence & Worcester Railroad - Comparative Multiple Analysis

Providence & Worcester Railroad (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Providence & Worcester Railroad

WikiWealth compares Providence & Worcester Railroad'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 Providence & Worcester Railroad's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Providence & Worcester Railroad by comparing Providence & Worcester Railroad 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 Providence & Worcester Railroad.

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

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