Reconnaissance Energy (Africa) Ltd
XTSX:RECO
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EV/IC
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.
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.
Valuation Scenarios
If EV/IC returns to its 3-Year Average (2.2), the stock would be worth CA$1.23 (9% upside from current price).
| 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
Peer Comparison
| Market Cap | EV/IC | P/E | ||||
|---|---|---|---|---|---|---|
| CA |
|
Reconnaissance Energy (Africa) Ltd
XTSX:RECO
|
427.6m CAD | 2 | -27 | |
| CN |
C
|
CNOOC Ltd
SSE:600938
|
1.1T CNY | 1.1 | 9 | |
| US |
|
Conocophillips
NYSE:COP
|
150.1B USD | 1.5 | 20.6 | |
| CA |
|
Canadian Natural Resources Ltd
TSX:CNQ
|
135B CAD | 1.7 | 12.1 | |
| US |
|
EOG Resources Inc
NYSE:EOG
|
74.7B USD | 1.7 | 15 | |
| PK |
O
|
Oil and Gas Development Co Ltd
LSE:37OC
|
59.6B USD | 12.3 | 106.6 | |
| US |
|
Diamondback Energy Inc
NASDAQ:FANG
|
59.1B USD | 1 | 35.7 | |
| US |
|
Hess Corp
NYSE:HES
|
46.1B USD | 2.1 | 20.7 | |
| US |
P
|
Pioneer Natural Resources Co
LSE:0KIX
|
46B USD | 1.5 | 9.4 | |
| AU |
|
Woodside Energy Group Ltd
ASX:WDS
|
63B AUD | 0.9 | 15.7 | |
| US |
V
|
Venture Global Inc
NYSE:VG
|
38.5B USD | 1.3 | 13.9 |
Market Distribution
| Min | 0 |
| 30th Percentile | 1 |
| Median | 1.7 |
| 70th Percentile | 3.7 |
| Max | 95 179.6 |
Other Multiples
Reconnaissance Energy (Africa) Ltd
Glance View
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).