Spectra Energy Pt - Comparative Multiple Analysis

Spectra Energy Pt (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Spectra Energy Pt

WikiWealth compares Spectra Energy Pt'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 Spectra Energy Pt's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Spectra Energy Pt by comparing Spectra Energy Pt 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 Spectra Energy Pt.

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

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