Rockwood Holdings - Comparative Multiple Analysis

Rockwood Holdings (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Rockwood Holdings

WikiWealth compares Rockwood Holdings'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 Rockwood Holdings's comparative analysis.

Notes from the analysis:

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


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

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

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