Questar - Comparative Multiple Analysis

Questar (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Questar

WikiWealth compares Questar'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 Questar's comparative analysis.

Notes from the analysis:

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


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

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

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