I thought I would share the following back of the envelopes I have used to give me a guide on valuation.
Using current analyst numbers, they are showing FY18 EBITDA at about $1,300m at US50/bbl for Brent oil price - this is my starting point.
At US65 for Brent, I estimate that STO's annualised EBITDA would currently sit at about $2,100m. Current net debt is sitting about $2,300m. If you apply an 8x EBITDA multiple to estimate STO's enterprise value, this comes in at $16,800m.
$16,800m - $2,300m net debt = $14,500m value of equity.
Currently about 2,083m shares on issue - so $14,500m / 2,083m = $6.96 per share.
So, for the moment and with a rising oil price, I personally am targeting around $7.00/share before I re-assess. If oil price reverses, then all bets are off.
As always, DYOR. The above are just my Tuesday morning musings and are probably as accurate as telling who will win the Cup today!
$50-60 New Normal or U.S Shale Bubble?, page-672
-
- There are more pages in this discussion • 140 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add STO (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$6.82 |
Change
0.100(1.49%) |
Mkt cap ! $23.02B | |||
| Open | High | Low | Value | Volume |
| $6.72 | $6.84 | $6.71 | $42.88M | 6.307M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 13309 | $6.82 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.83 | 58478 | 6 |
View Market Depth
| Last trade - 16.10pm 18/11/2024 (20 minute delay) ? |
| STO (ASX) Chart |
