Petrorecôncavo S.A. is an independent oil and gas operator focused on acquiring, developing, and revitalizing mature onshore fields in Brazil. The company's business model is vertically integrated, comprising the direct operation of production fields and the provision of oil services, such as drilling and well intervention, through its subsidiaries. The company's main activities are concentrated in two basins: the Recôncavo Basin, where the Bahia Terra Hub operates, and the Potiguar Basin, with the Potiguar Asset. Petrorecônica's production consists of oil and natural gas, which are sold to refineries and distributors. The company's strategy focuses on increasing production and optimizing the recovery of reserves in fields already in production, applying its technical knowledge and cost structure.
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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