According to the recent Fosters Broking report on LNG, Chinerie were trading at 26 x 2016 EV/EBITDA. This would seem overvalued in my mind (unlike LNG Ltd, Chinerie dont own the technology, so any EV can only be attributed to existing project pipeline).
Dont get me wrong - I'm happy if the market wants to apply this sort of premium... If you applied the same mulitple (26 x) to LNG's EV/EBITDA for 2 trains, LNG would be trading at about $13 per share!
LNG Price at posting:
57.0¢ Sentiment: Buy Disclosure: Held
