ZEN vs PEA, page-8

No worries Marcus. As ZEN have only been on the ASX for 18 months there isn't enough publicly available accounts data to have a picture of how they've performed through the same cycles as PEA. Looking forward, I don't have sufficient understanding of this business to understand whether there is some characteristic of ZEN's management or business model to justify their apparent premium

Yes - my prognosis on PEA is cautious. I do believe, however, that there is limited downside in the next couple of years due to the long term nature of its contracts. I also think that the company's own earnings forecasts for FY19 are conservative. My own are as follows:

Revenue: $79.6m + other income $0.7m

Operating Costs: $23.2m (made up of consumables/parts $6.9m, employee benefits $12.4m and other $3.9m)

EBITDA: $57.1m

Depreciation+Amortisation: $22.2m

Interest cost: $4.1m

NPBT: $30.9m

Tax: $9.3m

NPAT: $21.6m

Free cash flow: $23.1m, FCF yield approx. 9.4% at today's $0.57 SP.

This assumes $20m stay-in-business capex (hopefully overstated as they consolidate with Contract Power) and no change in working capital.