RE:RE:RE:RE:RE:Only option here is to hope for a take over. I looked at working capital and future discounted cash flows using a 10% discount rate. At 60 cents a share the company is still trading at 60 % of book value. This could happen when the outlook for oil stocks is promising.
I also looked at enterprise value to ebitda for a couple peers in the group, namely Precision drilling and Total Energy. They are trading at 4.96 and 3.89 respectively compared to Essential energy trading at 2.38 times ebitda. These are all current ttm values by the way.
if we use Total energy as an average then Essential Energy should be worth 35 cents a share.
if we use Precision drilling as an average then It should be trading at 44 cents/share
Stonksonlyup90 wrote: What are you basing your targets on?
ive been building a position in ESN myself, I get that money usually flows to the Trican's first... but $ESN is trading remarkably cheap on all metrics to TCW and overtime will catch up when spending in the patch increases, or ESN is acquired.