RE:Market Cap To Shares Outstanding Comparison Are you nuts or just making sh!t up? The inter day or any time of day market cap / shares outstanding = the fricken stock price!! So all penny stocks are cheap compared to a $20 stock? Or are you just trying to be funny? I hope so.
Snowballer wrote: Taking the interday market cap / shares outstanding = multiple of shares outstanding
(*the inverse gives as a percentage rather than an Xfactor i.e outstanding shares = x% of market cap value.)
In higher oil price environment, the negative debt turns into positive leverage. Watch BTE surge and it's low mutliple compound.
Taking a cross sample of oil companies from the O & G sector:
VII 7.2x
ARC 7.39
CVE 6.5x
VET 6.3x
MEG 5.7x
WCP 5.4x
ERF 5.12
CPG 4.1x
TOG 3.1x
BIR 2.68x
TOU 2.2x
NVA 1.47x
BTE 0.99x (***NOT EVEN 1X***)
GTE 0.93x
You can see the factor of shares outstanding to market cap for all these companies range from under 1x to over 7x
At a measly 1.5x BTE stockprice is $1.50
2x = $2
3x = $3
4x = $4
5x =$5
I think a 3.5B market cap with a 1.5 debt load brings us to a fair EV of $5B which = $6.29 net of debt in a $65 oil world.
People laugh at a $6 price target but I would ask you to start posting your own equity valuations, ratios and mutliples.