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Highbank Resources Ltd V.HBK

Alternate Symbol(s):  HBKRF

Highbank Resources Ltd is engaged in the business of acquisition, exploration, and development of mineral resource properties in Canada. The company's project includes the Swamp Point North project.


TSXV:HBK - Post by User

Bullboard Posts
Comment by aggmanon Jul 25, 2014 12:42pm
201 Views
Post# 22782436

RE:Now we are talking sense.

RE:Now we are talking sense.to augment this response.  What some analyts do is apply and ebitda multiple - as the method of valuing the enterprise based on earnings.  

At the moment - a fair ebitda multiple is 7.5 to 8.0 times for aggregate companies (it is higher than say for a pure lay RMX company - which is 4.5 to 5.0) because that factors in that aggregate earnings are more sustainable and durable. (with a resource based company the multiple is higher).

At the moment MLM and vmc are trading at 12 times (because earnings are a bit depressed and are in a state of recovery) - yet the analyst community knows what the earnings power of the businesses are - as so optically the ebitda multiple looks high.  It will normalise as these companies earnings return to a more normal level.

HBK is interesting; because og its pricing and marging - it will be supported at a higher multiple (in my view).

7.5 is prevailing industry standard.

HBK - warrants 10.0 - 12.0 (or greater) because its ASP and margin is literally "off-the-charts".
Bullboard Posts