GenTek - Comparative Multiple Analysis

GenTek (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of GenTek

WikiWealth compares GenTek'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 GenTek's comparative analysis.

Notes from the analysis:

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


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

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

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