GREY:XEBEQ - Post by User
Post by
Ciaoon Mar 15, 2022 1:52pm
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Post# 34515806
Simple valuation
Simple valuationAnalysts have grouped XBC with GRN and ANRG as the closest comparables within the cleantech space of RNG.
Analysts will use EV/Rev or P/S for comparing similar companies. XBC is trading below BV so it is an interesting exercise to include it in the simple valuation below.
If you apply the average of multiples for P/S and BV used for GRN and ANRG (avail on SH) against XBC (using trailing 2021 rev of $125M) you will get a share price of about $4.18 based on P/S and $5.54 based on BV.
That's quite a discount from the current share price (analysts do have targets ranging from $3 and up). Maybe someone could explain why XBC does not deserve the same P/S multiple as GRN/ANRG or perhaps why it does not command a premium P/S multiple.