how does sir's value compare to wsa? , page-28

parrot

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%