Titanium Metals - Comparative Multiple Analysis

Titanium Metals (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Titanium Metals

WikiWealth compares Titanium Metals'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 Titanium Metals's comparative analysis.

Notes from the analysis:

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

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

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

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