Talon Today, page-1576

The Oil and Gas industry average price to free cashflow ratio is 7.18 (from what i can find online).

The ratio is based on MC divided by Free Cash Flow.

TPD $107m MC (17.5c), using $25m Free Cash Flow, puts us at 4.28.

The lower the number the more undervalued the company is using this ratio. So, TPD is undervalued vs the industry average.

If we use the industry average of 7.18 and multiply $25m Free Cash Flow by the industry average of 7.18 we get $179.5m MC. That would be a fair value using this ratio. Which is about 29.5c per share.

Crude metrics for sure, but I find it hard to accept people saying it is priced in without evidence or at least some justification.

Other valuations based on in-ground resources and so on will no doubt find us further north than a $107m MC.

This share is wildly undervalued in my view.

Cheers
KK