Transcananda Pipelines - Comparative Multiple Analysis

Transcananda Pipelines (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Transcananda Pipelines

WikiWealth compares Transcananda Pipelines'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 Transcananda Pipelines's comparative analysis.

Notes from the analysis:

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


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

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

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