Weyerhaeuser - Comparative Multiple Analysis

Weyerhaeuser (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Weyerhaeuser

WikiWealth compares Weyerhaeuser'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 Weyerhaeuser's comparative analysis.

Notes from the analysis:

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


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

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

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