PE Ratio - 2023 vs. 2022RBC Action Direct shows TVE with a TTM (Trailing Twelve Months) PE (TTM) Ratio of 26.1 based on .16 cents EPS (TTM) which without a closer looks appears expensive.
However, RBC also shows that in Q4 TVE expected earnings per share is .41 cents and their 2023 annual earnings estimate is $1.38. So considering we are only 2 months away from year end and assuming that TVE actually meets the 2023 EPS estimate of $1.38, then based on today's current share price of $4.28, the more realistic PE Ratio is a mere 3.1 times earnings!
The recent comments on this board seem to suggest that ARC is dumping TVE shares and holding the share price down and although that may be true to some degree, it makes little sense to be selling off all their shares or trying to hard to hold the share price down at these levels when the share price is clearly not reflecting what it's really worth.
My guess is that ARC will probably hold 10 or 20 million shares (out of the 80 million they initially acquired / held) and we must be getting awfully close to that now. Trading Central is showing a 125% upside from here and if they're right then selling at today's price leaves ARC with a lot less profit than they will potentially make and I highly doubt they're that naive. And just imagine where TVE share price will be at $95 to $100 WTI or higher.
Tamarack Valley Energy Ltd. completed the acquisition of Deltastream Energy Corporation from ARC Equity Management (Fund 7) Ltd., ARC Energy Fund 7 and ARC Energy Fund 9 managed by ARC Financial Corp. and others. -October 12, 2022 | MarketScreener