Value ExtrapolationI have no idea what I am doing [LOL].
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Currently Alterra has 58.31 million shares
At today’s price of C$5.28, that implies a value of C$307.87 million.
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Our major shareholder, Marin Katusa, was discussing the purchase of 23% of a similar company, Eren Renewable Energy, by the French oil company, Total S.A., on September 19.
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Let us take a look.
Total S.A.’s investment into Eren Renewable Energy: US$258,000,000.
Percent Acquired: 23%
Implied 100% Valuation: US$1,239,130,435
Current & Near Term Production Capacity: 650 MW
Valuation per MW(US$/MW): US$1,906,355
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Alterra’s Current & Near Term Production Capacity: 786 MW
Implied Alterra Valuation: US$1,498,394,649.
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Implied Valuation in Canadian Dollars: C$1,883,541,606.
Divide by the Number of Alterra shares: C$32.30 / Share.
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Therefore, at C$5.28 / Share, Alterra is currently selling at 83.6% below its current Implied Valuation.
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At its Implied Valuation price, Alterra would be a 6.1-bagger.
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RJ