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Old 02-04-2022, 02:21 PM   #3428
Leondros
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Join Date: Mar 2011
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Quote:
Originally Posted by burn_this_city View Post
Basing them on cashflow multiples shows some are trading at 2x cashflow vs the 5-6 historical norm.
Lots of companies are trading 2 - 3x EBITDA/EV which is mind boggling - these companies can buy their whole capital structure every 2 - 3 years... The multiples are crazy.

Eric Nuttal had an interesting tweet early this week that said if we are truly back into bull territory (which we are), companies are going to start being valued on a discounted 2P basis once again. Its fairly certain the oil and has industry is here to stay for atleast another 10 - 15 years. They should be valued as such. The disconnect between the two is on average 200 - 300% returns...
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