Mechel Steel - Comparative Multiple Analysis

Mechel Steel (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Mechel Steel

WikiWealth compares Mechel Steel'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 Mechel Steel's comparative analysis.

Notes from the analysis:

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


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

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

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