T-3 Energy Services - Comparative Multiple Analysis

T-3 Energy Services (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of T-3 Energy Services

WikiWealth compares T-3 Energy Services'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 T-3 Energy Services's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for T-3 Energy Services.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to T-3 Energy Services'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 T-3 Energy Services's Analysis


How does this work? The Comparative Investment Analysis determines the value of T-3 Energy Services by comparing T-3 Energy Services 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 T-3 Energy Services.

See the T-3 Energy Services cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in T-3 Energy Services.

Also, see the T-3 Energy Services's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and T-3 Energy Services's valuation conclusion for a quick summary.