No worries Marcus. As ZEN have only been on the ASX for 18...

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.