Redwood Trust - Comparative Multiple Analysis

Redwood Trust (Comparative Multiple Analysis)

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

Notes on the Comparative Multiple Analysis of Redwood Trust

WikiWealth compares Redwood Trust'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 Redwood Trust's comparative analysis.

Notes from the analysis:

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


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

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

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