DCP Midstream Pt - Comparative Multiple Analysis

DCP Midstream Pt (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of DCP Midstream Pt

WikiWealth compares DCP Midstream Pt'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 DCP Midstream Pt's comparative analysis.

Notes from the analysis:

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

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

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

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