Paragon Shipping - Comparative Multiple Analysis

Paragon Shipping (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Paragon Shipping

WikiWealth compares Paragon Shipping'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 Paragon Shipping's comparative analysis.

Notes from the analysis:

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


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

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

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