Guidance For 2016 and 2017Well, I don't recall ever receiving guidance from the company looking out 2 years.
For the 2016 and 2017, management expects the Company to achieve (net interest):
| | | | | |
| | 2016 | | 2017 | |
| Generation (GWh) | 1,610 | | 1,706 | |
| Total revenue | 92,062 | | 100,496 | |
| Adjusted EBITDA | 40,721 | | 48,328 | |
| | | | | |
Still digesting, but if we can hold the same p/s of ~3.8 then you get a stock price increase of ~52% for this year; perhaps profitability will give a higher valuation a P/E of 8 on 2016 earnings would be a stock increase of ~42%.
I used simplistic calculates looking at current company value of C$229.64M and comparing the projected revenue and profit to this.
[(Projected Revenue x current p/s) - Current Market Value] / Current Market Value
[(92.062 x 3.8 = 349.83) - 229.64 = 120.20] / 229.64 = ~52%
[(Projected Profit x P/E) - Current Market Value] / Current Market Value
[(40.721 x 8 = 325.77) - 229.64 = 96.13] / 229.64 = ~42%
Perhaps the P/E will be higher due to a "growing" company.
At first glance it looks like it's worth sticking around for another year or two.
I am in it for the long mile,
Bold Forbes