Rosetta Resources - Comparative Multiple Analysis

Rosetta Resources (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Rosetta Resources

WikiWealth compares Rosetta 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 Rosetta Resources's comparative analysis.

Notes from the analysis:

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


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

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

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