Massey Energy - Comparative Multiple Analysis

Massey Energy (Comparative Multiple Analysis)

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

Notes on the Comparative Multiple Analysis of Massey Energy

WikiWealth compares Massey Energy'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 Massey Energy's comparative analysis.

Notes from the analysis:

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


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

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

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