0.5c per share dividend, page-79

Comparison of SHE to peer with very similar Profit Before Tax Normalized(PBTN) using last year Fundamentals.

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Triangle energy (Global) Ltd (TEG) and Stonehorse Energy (SHE) have the same 'TRBC sectors' and the same 'GICS industry group'.
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Definitions : PBTN= profit before tax normalized., EV = enterprise value
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• TEG Gross profit is 29% greater than SHE gross profit
• But if you look at its profit before tax normalized then it’s almost identical to SHE to within 6%. Normalized means that one off unusual profits are ignored, e.g. ignoreprofits from selling a oil well as this would distort the profit before tax.
• TEG has to spend (Cost of goods) 13.5 times more than SHE to make the same profit before tax normalized.
• TEG operating expenses are 76% more than that of SHE .
• TEG is valued at 24.8 million.

Since SHE and TEG are in the same industry and make a very similar profit before tax(PBTN) we can estimate SHE value as if it was valued in similar manner to TEG by the below steps :

1. Calculate TEG Enterprise value (in table below)
2. Calculate the ratio of PBTN / EV for TEG (in table below).
3. Using the ratio then apply the formula backwards to SHE, i.e. SHE EV = PBTN / Ratio
4. Add SHE Cash back to EV to get MCAP.
5. Divide Market cap by number of shares to get share price.

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		TEG	SHE
1	EV= Market Cap-cash	17,333,000	?
2	PBTN	5,543,000	5,167,000
3	Ratio=PBTN /EV	0.32	Ratio
4	EV= PBTN/Ratio	17,332,625	16,156,896
5	Estimate MCAP (Add cash bank in)	24,839,545	27,054,156
6	Number of Shares	1,380,000,000	684,446,000
7	Price Per share	0.018	0.04

Other companies in same sector have resulted in larger SHARE prices, but like to be conservative.


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