PRIO S.A. is an independent Brazilian oil and gas company with a business model focused on acquiring, redeveloping and operating mature production fields. The company specializes in efficient reservoir management and cost optimization to increase the recovery factor and extend the useful life of its assets. Its exploration and production operations are concentrated in oil fields located in deep waters, mainly in the Campos Basin, off the coast of Brazil. Its asset portfolio includes Frade, Albacora Leste, the Octopus and Hammershark cluster, and Peregrino, and the Wahoo field development. Production is carried out using floating production, storage, and transfer units (FPSOs). Additionally, the company has a unit for the sale of the oil produced.
Market capitalization, or "market cap", is the aggregate market value of a company represented in a dollar amount. Since it represents the “market” value of a company, it is computed based on the current market price (CMP) of its shares and the total number of outstanding shares.
Enterprise value (EV) measures a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt and any cash or cash equivalents on the company's balance sheet.
The enterprise value-to-revenue multiple (EV/R) is a measure of the value of a stock that compares a company's enterprise value to its revenue. EV/R is one of several fundamental indicators that investors use to determine whether a stock is priced fairly. The EV/R multiple is also often used to determine a company's valuation in the case of a potential acquisition. It's also called the enterprise value-to-sales multiple.
The enterprise value to earnings before interest, taxes, depreciation, and amortization ratio (EV/EBITDA) compares the value of a company—debt included—to the company's cash earnings less non-cash expenses. It's best to use the EV/EBITDA metric when comparing companies within the same industry or sector. Typically, when evaluating a company, an EV/EBITDA value below 10 is seen as healthy.
It follows the same logic as the EV/EBITDA indicator, but instead of EBITDA, EBIT is used, which considers non-cash D&A expenses in the company's operating result.
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