Rohm & Haas - Comparative Multiple Analysis

Rohm & Haas (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Rohm & Haas

WikiWealth compares Rohm & Haas'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 Rohm & Haas's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Rohm & Haas by comparing Rohm & Haas 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 Rohm & Haas.

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

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