Teekay Tankers - Comparative Multiple Analysis

Teekay Tankers (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Teekay Tankers

WikiWealth compares Teekay Tankers'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 Teekay Tankers's comparative analysis.

Notes from the analysis:

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


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

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

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