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Reconnaissance Energy (Africa) Ltd
XTSX:RECO

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Reconnaissance Energy (Africa) Ltd
XTSX:RECO
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Price: 1.12 CAD -0.88% Market Closed
Market Cap: CA$427.6m

EV/IC

2
Current
9%
Cheaper
vs 3-y average of 2.2

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2
=
Enterprise Value
CA$466.3m
/
Invested Capital
CA$207.1m

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2
=
Enterprise Value
CA$466.3m
/
Invested Capital
CA$207.1m

Valuation Scenarios

Reconnaissance Energy (Africa) Ltd is trading below its 3-year average

If EV/IC returns to its 3-Year Average (2.2), the stock would be worth CA$1.23 (9% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-44%
Maximum Upside
+53%
Average Downside
0%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 2 CA$1.12
0%
3-Year Average 2.2 CA$1.23
+9%
5-Year Average 3.1 CA$1.71
+53%
Industry Average 1.1 CA$0.63
-44%
Country Average 1.7 CA$0.92
-18%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close

Market Distribution

In line with most companies in Canada
Percentile
56th
Based on 3 166 companies
56th percentile
2
Low
0 — 1
Typical Range
1 — 3.7
High
3.7 —
Distribution Statistics
Canada
Min 0
30th Percentile 1
Median 1.7
70th Percentile 3.7
Max 95 179.6

Reconnaissance Energy (Africa) Ltd
Glance View

Market Cap
427.6m CAD
Industry
Energy

Reconnaissance Energy Africa Ltd. is a junior oil and natural gas company, which engages in the exploration and development in Namibia and Botswana. The company is headquartered in Vancouver, British Columbia. The firm is engaged in the exploration and development of oil and gas in Namibia and Botswana. The firm holds interest in a petroleum exploration license in northeast Namibia, which covers the entire Kavango sedimentary basin. The Company’s exploration license covers an area of approximately 25,341.33 square kilometers (6.3 million acres). The Kavango Basin offers a thick Permian sequence. The firm also holds interest in a petroleum exploration license in northwest Botswana, which comprises an area of approximately 8,990 square kilometers (2.2 million acres) and is contiguous to the Namibian license. Its two licenses together comprise 34,325 square kilometers (8.5 million acres).

RECO Intrinsic Value
0.04 CAD
Overvaluation 97%
Intrinsic Value
Price CA$1.12
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