Trex Company - Comparative Multiple Analysis

Trex Company (Comparative Multiple Analysis)

Home Comparative Index Trex Company

►Summary | Profile | News | Chart | SWOT | Cash Flow | Comps | Buffett | WACC

Link to services page

placeholder_large_analysis.png

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

Notes on the Comparative Multiple Analysis of Trex Company

WikiWealth compares Trex Company'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 Trex Company's comparative analysis.

Notes from the analysis:

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


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

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

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