BTE, WCP, both trading under 3x earnings
Once again, I look at both Baytex & Whitecap shares trading at under 3x P/E Ratios, makes no sense & both are severely undervalued. For example, ARX trades at 15x earnings, TOU at 12x, BIR trades at 9x earnings. I could keep comparing with many other Canadian oil and gas companies that are also in double digit P/E Ratios. Would it be safe to say that Baytex energy shares should be trading at least 10x earnings, equaling approximately $25.00? As for Whitecap resources, a P/E multiple of 10x should be in the $30.00 range. What's holding these two behind in the valuations dept? Is it the outstanding shares & debt? I trying to understand why so many other companies are trading at 10x earnings or above since many also have debt, some have fewer shares & at the same time have less revenue, less production, less FCF. Thoughts on this topic?