Not exact matches
Service businesses are best valued on revenue and profitability since there are few hard assets, while
production assets of
companies in manufacturing tend to be substantial drivers of
valuation along with revenue and profitability.
Also important was our failure to foresee that exploration and
production company stocks would become mere proxies for the price movements of natural gas, despite their attractive
valuations.
Although Mr. Gore's article includes a good deal of investor - savvy terminology, it is entirely lacking in two of the most important factors in the
valuation of any
company engaged in discovering and producing hydrocarbons: discounted cash flow (DCF) and
production decline rates.