RE: PE Ratio 2.5 Why?31 May 2022 10:47
Totally agree that this is massively undervalued, but a couple of naive points:
1. Can you assume a worst case scenario, that Brent goes to eg. 50% of what it is now ($60 per barrel)? Tax would also go down, maybe to $1B, so that gives me a FCF of $1.275B using your numbers...a forward PE of 3.5 (still very cheap, should be at least 7?)
2. Decommissioning costs? How much per year to subtract? Will surely have an effect, and I remember a figure of ~$5B from somewhere
Still a buy for me, could be anywhere between 2x - 5x higher in a couple of years