We are moving our target 2017e EV/EBITDAS multiple to 8.6x from 11.1x. The reasoning behind the reduction in the target multiple is that CEU’s prior multiple was due to its ability to payout its cash flow to investors in a robust dividend. With the Company moving to a dividend policy more closely aligned with the rest of our coverage universe, we expect its premium trading multiples to revert back to its OFS peers. CEU’s average EV/EBITDAS over the last five years has been 13.0x, whereas the gro ....
12 Feb 2016
Canadian Energy Services (CEU) Reduces Dividend 86%
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Canadian Energy Services (CEU) Reduces Dividend 86%
CES Energy Solutions Corp (CEU:TSE) | 0 0 0.0%
- Published:
12 Feb 2016 -
Author:
Ian B. Gillies -
Pages:
4
We are moving our target 2017e EV/EBITDAS multiple to 8.6x from 11.1x. The reasoning behind the reduction in the target multiple is that CEU’s prior multiple was due to its ability to payout its cash flow to investors in a robust dividend. With the Company moving to a dividend policy more closely aligned with the rest of our coverage universe, we expect its premium trading multiples to revert back to its OFS peers. CEU’s average EV/EBITDAS over the last five years has been 13.0x, whereas the gro ....