San Juan Basin Royalty - Comparative Multiple Analysis

San Juan Basin Royalty (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of San Juan Basin Royalty

WikiWealth compares San Juan Basin Royalty'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 San Juan Basin Royalty's comparative analysis.

Notes from the analysis:

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

How does this work? The Comparative Investment Analysis determines the value of San Juan Basin Royalty by comparing San Juan Basin Royalty 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 San Juan Basin Royalty.

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

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