I have over a few years I collected quite a few details around this
ultimately every company is the present value of the sum of it's expected cashflows
but jorc multiples are always quoted
at what point do we use an percent-of-npv instead of a jorc-multiple ?
there's a huge difference in using one or the other rules of thumb
and the range of jorc multiples quoted is huge, enough to justify any situation (from 15% to 2-3% and I have seen plenty of projects sold to a corporate buyer for <1% insitu
but if there's a resource, there's an npv estimate, the calculations are intertwined
so, it's always npv, most of time we just don't know the details to make it accurate
mkt cap = npv X probability-of-development
and your making a judgement on the probability bit
SIR seems too high because it's close 100%
SIR Price at posting:
$2.79 Sentiment: None Disclosure: Held