I have a conservative EPS forecast of $0.0475 for FY17, and my Bull Case EPS is $0.051. Assuming a 13-14 x Multiple, this would equate to a SP of 65c for the conservative estimate, and around 70c for the Bull Case.
Given management's guidance for improved EBITDA margins, I have FY17 EBITDA sitting at around $15.5M, and given the EBITDA to OCF conversion rate of 105%, I think Op Cash Flow should come in at around $16M, all else being equal.
If we valued the stock on it's cash flow (assume EPD trades at 6.7 x Op Cash Flow), then my PT would be materially higher. I'm not banking on the market awarding a higher cash-flow multiple for EPD, however if they do then I think that there's a lot of upside in this stock.
EPD Price at posting:
48.0¢ Sentiment: None Disclosure: Not Held
