GENGF - Gear Energy: The Important Metric Management Ignores
Over the last several months, Gear Energy's (GENGF) management has been more and more vocal about the valuation of the company. The oil and gas producer's latest presentation even highlights an estimated 50% valuation discount to its peer average.
But management's comparisons to the company's peers ignore sustaining capex, which is an important parameter. As a result, in contrast with management's opinion, I estimate the market doesn't undervalue Gear Energy compared to other Canadian oil and gas producers.
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Note: All the numbers in the article are in Canadian dollars unless