Thank you Rovic, 3.0 is still low. . Potential market cap = Cash + EBITDA * P/E = Cash + EBITDA * 3.0 . Future Market cap with 1 set of wells We get the graph below. (Y is accumulated EBITDA in thousands of AUD, X axis is number of months). Annual EBITDA = Gradiant * number of months= 417.9K *12. Tthen in 2.5 . years we are looking at 15 million cash+EBITDA of 5 miilion so theoretical market cap = 15+5*3 =30 million market cap.
. Future Market cap with 3 sets of wells . After 4 years , Cash= 58 million, and annual EBITDA is around 28 million So Market cap =58 million + 3.0 * 28 million= 142 million market cap. . For this to happen means SHE issuing a dividend like CUE to attract a P/E ratio of 3.0 and them opening up 3 sets of wells, which is a lot of wells but a lot of capital growth. . Lets hope the board gets back to business of opening wells. . These are my speculation on intrinsic value in the future if SHE opens up more wells. , If SHE market cap does not rise then i would be quite happy for them to pay out a large dividends in the future. . Lets hope 2024 is a transformative year for SHE as written by David deloub on the investment hub.
SHE Price at posting:
1.3¢ Sentiment: None Disclosure: Held
