PE ratioOil and gas sector PE typically low due to ongoing capex drilling to sustain output. Worth noting that capex is not part of income expense and not considered in calculating earnings. Capex is accounted for by low PE.
That said, VET is trading around 3 PE. From Simply Wallstreet, "VET is good value based on its Price-To-Earnings Ratio (2.7x) compared to the peer average (4.8x)."
VLE expected net income forecast for 12 months when all is said and done works out to approximately CA$462 million based on the company estimate of US$33 million, 87.5% ownership, tax losses applied and current exchange. At 95 million shares, net EPS works out to CA$4.86. That's $4.86 per share.
Simply put, to reach a PE of 2, the SP target is anywhere between $9.50 and $10 a share. Imagine a PE of 3 or 4!
The Q1 earnings report is going to be very interesting!