RGC Resources - Comparative Multiple Analysis

RGC Resources (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of RGC Resources

WikiWealth compares RGC Resources'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 RGC Resources's comparative analysis.

Notes from the analysis:

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


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

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

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