Nordic American Tanker - Comparative Multiple Analysis

Nordic American Tanker (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Nordic American Tanker

WikiWealth compares Nordic American Tanker'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 Nordic American Tanker's comparative analysis.

Notes from the analysis:

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


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

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

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