Ritchie Bros. Auctioneers - Comparative Multiple Analysis

Ritchie Bros. Auctioneers (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Ritchie Bros. Auctioneers

WikiWealth compares Ritchie Bros. Auctioneers'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 Ritchie Bros. Auctioneers's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Ritchie Bros. Auctioneers by comparing Ritchie Bros. Auctioneers 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 Ritchie Bros. Auctioneers.

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

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