RTI Intl Metals - Comparative Multiple Analysis

RTI Intl Metals (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of RTI Intl Metals

WikiWealth compares RTI Intl Metals'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 RTI Intl Metals's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of RTI Intl Metals by comparing RTI Intl Metals 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 RTI Intl Metals.

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

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