Texas Pacific Land Trust - Comparative Multiple Analysis

Texas Pacific Land Trust (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Texas Pacific Land Trust

WikiWealth compares Texas Pacific Land Trust'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 Texas Pacific Land Trust's comparative analysis.

Notes from the analysis:

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


How does this work? The Comparative Investment Analysis determines the value of Texas Pacific Land Trust by comparing Texas Pacific Land Trust 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 Texas Pacific Land Trust.

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

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