Stratus Properties - Comparative Multiple Analysis

Stratus Properties (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Stratus Properties

WikiWealth compares Stratus Properties'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 Stratus Properties's comparative analysis.

Notes from the analysis:

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


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

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

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