Arch Coal - Comparative Multiple Analysis

Arch Coal (Comparative Multiple Analysis)

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Improve your investment analysis with by seeing the Arch Coal's Discounted Cash Flow analysis, Arch Coal's Warren Buffet analysis, and Arch Coal's Weighted Average Cost of Capital (WACC) Analysis.

Notes on the Comparative Multiple Analysis of Arch Coal

WikiWealth compares Arch Coal'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 Arch Coal's comparative analysis.

Notes from the analysis:

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


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

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

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