Suburban Propane - Comparative Multiple Analysis

Suburban Propane (Comparative Multiple Analysis)

placeholder_large_analysis.png
Banner%20-%20The%20perfect%20tool%20for%20investors%281%29.gif

Notes on the Comparative Multiple Analysis of Suburban Propane

WikiWealth compares Suburban Propane'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 Suburban Propane's comparative analysis.

Notes from the analysis:

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


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

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

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