Simple valuation calculation We know pretax cash flow is 51% of revenue, tax losses are carried forward and 2 times cash flow is conservative. That said, 1 x revenue comes to roughly the same valuation.
At current exchange, 25000 bpd with Wassana included x CA$115 per bbl x 365 is roughly CA$1 billion in revenue. 10 bucks a share at 100 million shares outstanding is fair.
Just a quick rough calculation.
In comparison, VET 2023 earnings forecast is CA$4.12 on CA$2.71 billion revenue while VLE earnings forecast appears to be roughly CA$4.50 on CA$1 billion after 10% capex. VET has a market cap of CA$2 billion while VLE has a market cap of roughly CA$250 million.
Which stock would you rather own?