Penn Virginia - Comparative Multiple Analysis

Penn Virginia (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Penn Virginia

WikiWealth compares Penn Virginia'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 Penn Virginia's comparative analysis.

Notes from the analysis:

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


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

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

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