Parker Drilling - Comparative Multiple Analysis

Parker Drilling (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Parker Drilling

WikiWealth compares Parker Drilling'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 Parker Drilling's comparative analysis.

Notes from the analysis:

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


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

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

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