Having recently gone over the investment prospects for Italy's Eni (E) and China's CNOOC (CEO), I went into PetroChina (PTR)
expecting to find another state-owned energy company trading at a
discount to fair value. I think that is what I found, though deciding on
the "right" EV/EBITDA multiple involves pretty arbitrary decisions of
whether to add a half-point here or there that move the fair value quite
a lot. I think PetroChina is undervalued today if it can deliver the
mid-single digit EBITDA growth that analysts expect, but significant
reserve potential has to be viewed in the context of rising production
costs and a significant degree of interference from the government at
all levels of the operation and end markets.
Read the full article here:
Can Natural Gas Development Drive PetroChina Further?
No comments:
Post a Comment